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Landbay

Sample questions relating to Landbay transfer of equity

  • I am filling out a Landbay transfer of equity application and have arrived at the part regarding defaults etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit score. Am I obliged to disclose these?
  • Is it possible to apply to request more money from Landbay as part of a Transfer of Equity?
  • As things stand I have a joint Landbay mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is about 200k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
  • In 2012 I purchased a property without my partner's name on the ownership paperwork. My conveyancing solicitor said it is because she is not in the mortgage with Landbay. Is it possible for me to add her name on the documents at HM Land Registry?
  • My Landbay home loan is in joint names with ex, who has agreed to be removed and let me have the property. Landbay have consented to the transfer of equity to my individual name. Will Landbay get in touch with my company to verify my salary?
  • Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Landbay?
  • My ex-partner and I are are seeking to find an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Landbay. I I am concerned about being overcharged but with so many conveyancing organisations who do transfer of equity conveyancing to choose from...how do I know which one is best select?

Information that may be required from your lawyer is likely to ask in relation to your Landbay Transfer of Equity

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please provide the details of anyone to be added to the title deeds?

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

Can you give the details of anyone who jointly owns the property with you?

Please list all persons who occupy the property, their respective ages and relationships to you.

Please give the name(s) and addresse(s) of anyone to be extracted from the property title?

Caveats to be read in in addition to the above Landbay transfer of equity information :

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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger 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 cases, 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 lawyer 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Landbay.

Preparing the Transfer of Equity with a Landbay Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 lawyer 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 does not constitute 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