Questions and answers: Leeds Building Society transfer of equity
- Have recently split up with my partner of thirty years. I'm now living with my parents again and she wishes to remain in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Leeds Building Society? I assume proper valuations are required but I would like ensure that I'm getting the best deal
- My decree absolute is through as is the consent order. Now I must address the transfer of equity on title deeds and the Leeds Building Society home loan. I have asked Leeds Building Society for the transfer of equity forms. What are my next steps?
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Leeds Building Society?
- Me and a friend got a joint mortgage with Leeds Building Society on a flat in 2013. I am now thinking of buying a house on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Would there be any potential problem with Leeds Building Society with him being responsible for the total mortgage rather than only half of it?
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- I am selling my share of a property in Hendon to the other co-owners fiance, they are sticking with Leeds Building Society as the the existing lender. We are in heated discussion as to who must cover the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the legal bill?
- My Leeds Building Society home loan we jointly entered into with ex, he has agreed to be removed and let me have the property. Leeds Building Society will permit the transfer of equity to me solely. Do Leeds Building Society call my boss to confirm my salary?
Examples of information requested in a lawyer form relating to Leeds Building Society Transfer of Equity
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please let us know where you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Please give the details of anyone to be extracted from the property title?
General Advice to read in further to the above Leeds Building Society transfer of equity Info :
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, provisions in the lease may require 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 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 conveyancer 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Leeds Building Society.
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 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.