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Leeds Building Society

Common questions relating to Leeds Building Society transfer of equity

  • Leeds Building Society have just agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
  • Been reviewing consumer blogs that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time remortgaging with Leeds Building Society
  • What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Leeds Building Society - and have been quoted Four Hundred pounds excluding VAT by Leeds Building Society's approved conveyancing solicitor, Have I been over quoted?
  • My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name in order mitigate tax on rental income. If Leeds Building Society are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • My divorce has gone through as is the consent order. Now I have to deal with the transfer of equity at the HMLR and the Leeds Building Society home loan. I have called Leeds Building Society for the transfer of equity forms. What are my next steps?
  • I am in the process of mortgaging my apartment in Heathfield does my lawyer need to be on the Leeds Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
  • I acquired a house with a friend five.seven years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Leeds Building Society mortgage. There is a significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?

Examples of questions in a conveyancer form concerning a Leeds Building Society Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please inform us if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?

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

Has one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Can you provide the details of anyone who jointly owns the property with you?

Caveats to be 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 titles

Should the tenure of your property be leasehold, 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 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 as a result of 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 conveyancing solicitor 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
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 conveyancing solicitor 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.


Frequently asked questions relating to Leeds Building Society transfer of equity