Frequently asked questions relating to Leeds Building Society transfer of equity
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Leeds Building Society?
- My wife and myself have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to mitigate tax on the letting income. If Leeds Building Society are fine with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- I already have a home loan with Leeds Building Society and am maintaining my current mortgaging but applying to have have the equity transferred to my name only so my ex won't be on it any longer. How long does the whole transfer of equity process take?
- I co-own a property in Timperley
, with a Leeds Building Society mortgage with my former husband. Him and his new partner are going to acquire my share. We had approval from Leeds Building Society to substitute my name with hers. The transfer of equity has to be completed by a conveyancer for Leeds Building Society (supposedly). In order to save fees can I deal with the Land Registry change?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Leeds Building Society?
- My partner and I co-own a house in Crabtree
. Home loan is with Leeds Building Society. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be easy to so?
- I am completing a Leeds Building Society transfer of equity request and have arrived at the questions concerning defaults etc. I do some debts that I have been reducing since 2009, I understand that they have long since disappeared from my credit records. Do I need to reveal these?
Sample of information requested in a conveyancing solicitor questionnaire relating to Leeds Building Society Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Who will be responsible for the costs of the Transfer of Equity?
Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Caveats to be read in supplemental the above Leeds Building Society transfer of equity Questions and Answers :
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 Leeds Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, 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 strictly observed you may be in violation of 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 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 Leeds Building Society 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 Leeds Building Society 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Leeds Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Leeds Building Society 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 Leeds Building Society 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.