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Common questions relating to Landbay transfer of equity

  • What should I be budgeting for when it comes to what legal costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Landbay - and have been quoted £350 excluding VAT by Landbay's approved conveyancing solicitor, Have I been over quoted?
  • As things stand I have a joint Landbay mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The outstanding mortgage is approx 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
  • I plan to remortgage my apartment in Littleborough switching from Lloyds TSB to Landbay. The flat is jointly owned but I would like it to be in my name only as and when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to incur conveyancer fees.
  • My existing mortgage is with Landbay. Can I transfer equity to someone under 18 years old?
  • My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Landbay mortgage. I have asked Landbay for the transfer of equity forms. What happens next?
  • What can I do where I am not happy with the conveyancer who carried out our transfer of equity conveyancing?
  • Is it possible to transfer the equity held in my property with my Landbay mortgage?

Questions that your conveyancer may ask in relation to your Landbay Transfer of Equity

Please provide the details of anyone to be removed from the title deeds?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

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 provide a copy of your National Insurance Number?

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

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

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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 conveyancer 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.
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 conveyancer 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