Landmark transfer of equity: q and a’s
- I currently have a joint Landmark mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
- My former husband are planning to get a lawyer in place for a new mortgage with Landmark. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over the country. How necessary is it to have a conveyancer local to us?
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Landmark - and have been quoted £350 excluding VAT by Landmark's approved lawyer, Is this a reasonable price?
- What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Landmark?
- Law month I separated from my ex of 18 years. I'm now living with my mum and dad and she wants to stay in the property and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the Landmark home loan? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being taken advantage of
- I acquired a house with my cousin five.seven years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Landmark mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- What if my application doesn't meet Landmark lending criteria for a transfer of equity?
Sample of information requested in a conveyancer questionnaire concerning a Landmark Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Where you are adding a person 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” Questionnaire.
Has consent been obtained from Landmark to the proposed transfer of equity?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please provide a copy of your National Insurance Number?
Important warnings to consider in further to the above Landmark 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 Landmark 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 require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
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 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 the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Landmark your property may be repossessed.
Preparing the Transfer of Equity with a Landmark 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 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 lawyer 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.