Recently asked questions relating to Landbay Partners transfer of equity
- Landbay Partners have just agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
- I already have a home loan with Landbay Partners and am keeping my current mortgaging but applying to have have the equity transferred to my name alone so my ex will come off the mortgage. How long can it take for the application to be processed?
- Me and a friend got a joint mortgage with Landbay Partners on a apartment in 2013. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential concerns with Landbay Partners with him being on the hook for the total mortgage as opposed to only half of it?
- I currently have a joint Landbay Partners mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is about 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax involved?
- I am selling my share of a house in Hendon to my co-owners fiance, they are sticking with Landbay Partners as the the existing mortgage company. We are haggling as to who should cover the costs of the transfer of equity. Is this normally split or is one of us liable for the charges for?
- My decree absolute is through as is the consent order. Now I need to sort out the transfer of equity for the property and the Landbay Partners home loan. I have called Landbay Partners for the transfer of equity forms. What are my next steps?
- What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Landbay Partners - and have been quoted £250 excluding VAT by Landbay Partners's appointed conveyancer, Have I been over quoted?
Questions that your conveyancing solicitor could ask in relation to your Landbay Partners Transfer of Equity
Has consent been obtained from Landbay Partners to the proposed transfer of equity?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is it the case that one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Please clarify where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Important warnings to consider in conjunction with the above Landbay Partners transfer of equity Questions and Answers :
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 Partners conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, 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 conditions are not complied with 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 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 Partners 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 Partners 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Landbay Partners your property may be repossessed.
Preparing the Transfer of Equity with a Landbay Partners 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 Partners 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 contained within 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.
