Frequently asked questions relating to Accord Buy to Let transfer of equity
- My former wife are seeking to get a lawyer in place for a remortgage with Accord Buy to Let. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over England and Wales. Do we need to instruct a conveyancing solicitor local to us?
- Me and my partner co-own a property in Friern Barnet
. Mortgage is with Accord Buy to Let. I want to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be straightforward?
- Accord Buy to Let have today agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?
- My partner and I jointly own a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. If Accord Buy to Let are happy with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- At what stage do I pay stamp duty chargeable for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage with Accord Buy to Let?
- I am am in need of a conveyancing solicitor to deal with my transfer of equity. Accord Buy to Let have been approached for a refinancing. I thought of asking my financial adviser. I am lead to believe he will likely get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- I co-own a flat in Friern Barnet
, with a Accord Buy to Let mortgage with my ex husband. He and his fiance are going to buy me out. We had approval from Accord Buy to Let to substitute my name with hers. The transfer of equity has to be done by a lawyer for Accord Buy to Let (apparently). Can we deal with the Land Registry formalities?
Information that may be required from your lawyer is likely to ask about your Accord Buy to Let Transfer of Equity
Please give the details of anyone to be added to the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
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)
Can you give the details of anyone who jointly owns the premises with you?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Caveats to be read in supporting the above Accord Buy to Let transfer of equity Advice :
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 Accord Buy to Let conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 conditions are not complied with you may be in violation of your covenants under 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 lawyer will check with Accord Buy to Let 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 Accord Buy to Let 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Accord Buy to Let your property may be repossessed.
Preparing the Transfer of Equity with a Accord Buy to Let 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 Accord Buy to Let 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.
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.