Frequently asked questions relating to Leeds Building Society transfer of equity

• Me and a friend got a joint mortgage with Leeds Building Society on a property in 2013. I am now thinking of purchasing a property by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential concerns with Leeds Building Society with him being responsible for the total loan rather than only half of it?
• I intend to remortgage my flat in Miles Platting changing from Chelsea BS to Leeds Building Society. The maisonette is currently in joint names but I would like it to be in my name only when I switch. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• What is the process for having someone removed off the title documents to a house if the mortgage is with Leeds Building Society
• Our mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Leeds Building Society - Is it not simpler advisable to just use them?
• Is there such a thing a transfer of equity stamp duty calculator?
• I already have a home loan with Leeds Building Society and am retaining my current mortgaging but applying to have have the equity transferred to my sole name so my former wife will no longer be on the title. How long can it take for the forms to be processed?
• I am are seeking to find a value for money conveyancing lawyer to assist in a transfer of equity and remortgage with Leeds Building Society. I want to avoid being ripped off but with lots of conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?

Sample of questions in a conveyancing solicitor questionnaire relating to Leeds Building Society Transfer of Equity

General Advice to read in further to the above Leeds Building Society 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 Leeds Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 violation of your covenants under 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 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 valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Leeds Building Society 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 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 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.