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Landmark transfer of equity: q and a’s

  • How much the typical legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Landmark - and have been quoted Four Hundred pounds including VAT by Landmark's appointed conveyancer, Have I been over quoted?
  • When it comes to transfer of equity conveyancing involving a remortgage with Landmark should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My fiance and myself have equal shares in a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. Assuming Landmark are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
  • As things stand I have a joint Landmark mortgage with my brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy a property with my fiance. The outstanding mortgage is in the region 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax due?
  • What if my application doesn't meet Landmark lending criteria for a transfer of equity?
  • I intend to refinance my apartment in Littleborough switching from Lloyds TSB to Landmark. The home is currently in joint names but intend for it to be in my name only as and when I transfer. My wife has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
  • I got divorced in 2011. For some reason I never got around to change the ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Landmark is happy to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?

Questions that your lawyer is likely to ask regarding your Landmark Transfer of Equity

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

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please give the details of anyone to be extracted from the title deeds?

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

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

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

Caveats to be read in in addition to the above Landmark 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 Landmark conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under 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 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 Landmark 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 Landmark 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 finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Landmark.

Preparing the Transfer of Equity with a Landmark 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 Landmark 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 contained within 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 Landmark Mortgages transfer of equity