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Accord Buy to Let transfer of equity: q and a’s

  • Is it possible to transfer the equity held in my property with my Accord Buy to Let mortgage?
  • My partner and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name in order mitigate tax on the letting income. If Accord Buy to Let are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
  • I own a property in Witham , with a Accord Buy to Let loan with my former partner. Him and his fiance are going to buy me out. We had the go ahead from Accord Buy to Let to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Accord Buy to Let (supposedly). Is it possible for us to deal with the Land Registry change?
  • Have recently separated from my wife of twenty years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after paying off the mortgage with Accord Buy to Let? I assume proper valuations are necessary but I would like to be confident that I'm getting I am not being walked over
  • I already have a home loan with Accord Buy to Let and am maintaining my existing mortgaging but applying to have have the equity transferred to my name only so my former husband will come off the deeds. How long can it take for the paperwork to be processed?
  • I am selling my share of a property in Hendon to my co-owners husband, they are sticking with Accord Buy to Let being the the existing mortgage company. We are haggling as to who must cover the charges for the transfer of equity. Is this usually split or is one party liable for the legal bill?
  • I recently purchased a house without my wife's name on the title. My lawyer said it is because she was not in the loan offer with Accord Buy to Let. I'm wondering is there any way that I can put her name on the deeds?

Sample of information requested in a lawyer form relating to Accord Buy to Let Transfer of Equity

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be added to the title deeds?

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?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Important warnings to consider in conjunction with the above Accord Buy to Let 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 Accord Buy to Let conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 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 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 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 lawyer 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 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.


Frequently asked questions relating to Accord Buy to Let transfer of equity