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Questions and answers: Landbay transfer of equity

  • My partner and I jointly own a house in Blaenavon . Mortgage is with Landbay. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
  • I am selling my share of a property in Warwick to the other co-owners fiance, they are reapplying to Landbay. We are haggling as to who must cover the legal bill for the transfer of equity. Is this usually split or is one party obliged to cover the charges for?
  • I am planning on removing a name from a joint mortgage and the Landbay require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Wakefield conveyancer to deal with the transfer of equity? They need to be on the Landbay conveyancing panel.
  • Can I apply to request more money from Landbay as part of a Transfer of Equity?
  • My dad died early last year leaving a unencumbered property to me and my step brother equally. Having continues to reside at the premises, there was a condition in the will saying the housecould not be sold for 2 years after her passing so he could remain there for a prescribed period. He now wants to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to purchase my half from me?
  • I am answering a Landbay transfer of equity form and have come to the section regarding defaults etc. I do some debts that I have been discharging over a long period, I understand that they no longer remain my credit rating. Must I disclose these?
  • How and when do I pay stamp duty chargeable for the transfer of equity in my home in my name alone which is happening simultaneously with a remortgage via Landbay?

Questions that your conveyancing solicitor is likely to ask in relation to your Landbay Transfer of Equity

Please provide the details of anyone to be extracted from the property title?

Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Have you approached Landbay to obtain consent to the Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Important warnings to consider in supporting the above Landbay transfer of equity Info :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Landbay conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Landbay This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Landbay or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Landbay your property may be repossessed.

Preparing the Transfer of Equity with a Landbay Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Landbay is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.


Frequently asked questions relating to Landbay transfer of equity