Recently asked questions relating to Landmark transfer of equity
- My brother and I got a joint mortgage with Landmark on a property a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any problem with Landmark with him being solely liable for the total mortgage as opposed to only half of it?
- My decree absolute is through as is the consent order. Now I have to address the transfer of equity on title deeds and the Landmark mortgage. I have called Landmark for the transfer of equity forms. What happens next?
- I am are looking to find a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Landmark. I really don't want to get ripped off but with so many conveyancing organisations who do transfer of equity conveyancing out there...how do I know which one to select?
- My mother died early last year leaving a mortgage-free semi to me and my step brother in equal shared. Having continues to reside at the house, there was a provision in her will specifying that the propertycould not be sold for three years after her death so he could remain there for a prescribed period. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my half from me?
- Is there such a thing a transfer of equity stamp duty calculator?
- I am looking for a lawyer to handle my transfer of equity. Landmark are dealing with the refinancing. I considered asking my mortgage broker. I am lead to believe he may receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
- Will I incur any fees for a Transfer of Equity where the current mortgage is with Landmark?
Sample of questions in a conveyancing solicitor questionnaire relating to Landmark Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please let us know if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to read in conjunction with the above Landmark transfer of equity Advice :
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, the lease may require that you obtain the consent of the landlord. 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 as a result of 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 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 valuation 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 lawyer 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 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.