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Common questions relating to Landbay transfer of equity

  • My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity for the property and the Landbay mortgage. I have contacted Landbay for the transfer of equity application. What happens next?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Landbay?
  • What do I do if I am unhappy with the conveyancer who conducted my transfer of equity transaction?
  • My fiance and I jointly own a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name in order mitigate tax on the letting income. Assuming Landbay are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
  • Our mortgage broker has suggested using their conveyancer for my Transfer of Equity plus remortgage with Landbay - Surely it’s advisable to just use them?
  • What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Landbay mortgage account?
  • My friend and I got a joint mortgage with Landbay on a apartment a couple of years ago. I am now thinking of buying a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount what happens next? Is there likely to be any concerns with Landbay with him being responsible for the total loan rather than only half of it?

Questions that your conveyancing solicitor could ask about your Landbay Transfer of Equity

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

If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please give the name(s) and addresse(s) of those who jointly own the property with you?

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

Please give 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

Caveats to be read in conjunction with the above Landbay transfer of equity Questions and Answers :

Tax and Legal

There may be various 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, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in 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 valuation of the property at the time of completion 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 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.

Content 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