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Leeds Building Society

Recently asked questions relating to Leeds Building Society transfer of equity

  • I am in the process of refinancing my house in Miles Platting does my lawyer need to be on the Leeds Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
  • What are the average conveyancing charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Leeds Building Society - and have been quoted Three Hundred pounds plus VAT by Leeds Building Society's appointed lawyer, Have I been over quoted?
  • When it comes to transfer of equity conveyancing involving refinance with Leeds Building Society should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My father died last January leaving a loan-free property to me and my step brother equally. He has always lived in the premises, there was a clause in the will saying the premisescould not be sold for 2 years following her passing so he could reside there for a while. He now says he would like to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the traditional way to acquire my share?
  • At what point do I pay the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is taking place at the same time as a refinancing via Leeds Building Society?
  • My fiance and myself have equal shares in a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name in order reduce our tax on the letting income. Assuming Leeds Building Society are content 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 deeds would I lose my CGT relief.
  • I intend to refinance my home in Crabtree switching from Halifax to Leeds Building Society. The flat is currently in joint names but wish for it to be in my name only as and when I switch. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer charges.

Examples of information requested in a conveyancing solicitor questionnaire relating to Leeds Building Society Transfer of Equity

Have you approached Leeds Building Society to seek consent to the Transfer of Equity

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?

If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

Please inform us where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

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

Important warnings to consider in supplemental 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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger 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 is dependent on the market value of the property at the time of completion 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 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.

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