Frequently asked questions relating to Landmark transfer of equity

• I am completing a Landmark transfer of equity form and have arrived at the questions that asks about defaults etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit score. Am I obliged to set these out?
• How and when do I incur stamp duty due for the transfer of equity in my home in my sole name which is taking place simultaneously with a remortgage with Landmark?
• I am in the process of refinancing my property in Winchelsea does my lawyer need to be on the Landmark Conveyancing panel. The conveyancing also involves a transfer of equity.
• Law week I split up with my wife of twenty years. I'm now living with my parents again and she wishes to stay in the property and buy me out. What portion am I entitled to. Is it half of the equity after discharging the mortgage with Landmark? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
• My partner and I jointly own a property in Dunnington . Mortgage is with Landmark. I wish to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be straightforward?
• I am transferring my share of a property in Woodside to the other co-owners fiance, they are reapplying to Landmark. We are haggling as to who should pay the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Landmark?

Examples of information requested in a conveyancer form concerning a Landmark Transfer of Equity

Caveats to be read in supplemental 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 properties

If your property is leasehold, provisions in 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 terms are not adhered to you may be in violation 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 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 lawyer 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.

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.

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.