Sample questions relating to Accord Buy to Let transfer of equity
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Accord Buy to Let?
- I jointly own a apartment in Blaenavon
, with a Accord Buy to Let mortgage with my former partner. Him and his new partner are going to buy me out. We had approval from Accord Buy to Let to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Accord Buy to Let (apparently). In order to save fees can I deal with the Land Registry change?
- I am trying to find a lawyer to handle my transfer of equity. Accord Buy to Let are dealing with the refinancing. I considered asking my financial adviser. I understand he may receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- When it comes to transfer of equity conveyancing involving a remortgage with Accord Buy to Let should I be invoiced VAT 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
- My partner and I have equal shares in a BTL. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to reduce our tax on rental income. If Accord Buy to Let are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- I am completing a Accord Buy to Let transfer of equity application and have arrived at the questions concerning debts etc. There are some debts that I have been paying off since 2007, in fact they have long since disappeared from my credit rating. Must I reveal these?
- How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my house in my sole name which is taking place at the same time as a switching mortgage with Accord Buy to Let?
Examples of questions in a conveyancer questionnaire concerning a Accord Buy to Let Transfer of Equity
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?
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Important warnings to consider in in addition to the above Accord Buy to Let transfer of equity Questions and Answers :
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 Accord Buy to Let conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require 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 potentially result in 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 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 market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Accord Buy to Let.
Preparing the Transfer of Equity with a Accord Buy to Let Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 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.