Top seven questions relating to Landmark transfer of equity

• I co-own a apartment in Crabtree , with a Landmark mortgage with my former partner. He and his fiance are going to buy me out. We had approval from Landmark to remove my name with hers. The transfer of equity has to be completed by a lawyer for Landmark (supposedly). In order to save fees can I deal with the Land Registry change?
• Is it sensible to stop my mortgage payments with Landmark once a date for my remortgage and transfer of equity has been agreed?
• Landmark yesterday agreed I can take over the mortgage on the house. I had applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
• Given that we have been 2 a couple of years separated I have opted to give up my interest in our house to my husband who is re-mortgaging with Landmark. Could this transfer of equity be done inside one month?
• Is it possible to transfer the equity held in my property with my Landmark mortgage?
• Last year purchased a apartment without my fiance’s name on the deeds. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Landmark. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
• I purchased a flat with my cousin six years ago Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Landmark mortgage. There is a 30k difference between the value the bank say and what the property would sell for currently. Can you offer any advice?

Examples of questions in a conveyancing solicitor form relating to Landmark Transfer of Equity

General Advice to read in supporting the above Landmark transfer of equity information :

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 premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach 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 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 is dependent on the market value of the property at the time of completion 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 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 conveyancing solicitor 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.