Landmark transfer of equity: q and a’s
- My partner and myself jointly own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. If Landmark are content with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- I got my Decree Absolute four years ago. Foolishly I never got around to change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Landmark is happy to transfer the full equity in my name (affordability checks done). Does she need a solicitor?
- Landmark have just agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with Landmark
- When it comes to transfer of equity conveyancing involving a remortgage with Landmark should I be invoiced value added tax 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
- I jointly own a house in Heathfield
, with a Landmark mortgage with my former husband. He and his new partner are going to acquire my share. We had the go ahead from Landmark to replace my name with hers. The transfer of equity has to be completed by a lawyer for Landmark (supposedly). Is it possible for us to deal with the Land Registry change?
- My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity at the HMLR and the Landmark home loan. I have asked Landmark for the transfer of equity application. What happens next?
Questions that your lawyer may ask about your Landmark Transfer of Equity
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
We need you to provide the National Insurance Number(s) of all the new owners (required for submission 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
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone to be removed from the property title?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
General Advice to read in in addition to 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
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 landlord. If such conditions are not complied with you may be in breach 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 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 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 is dependent on the market value of the property at the conclusion 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 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.