Common questions relating to Leeds Building Society transfer of equity
- I am are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Leeds Building Society. I I am concerned about by bill escalating out of control and there's many conveyancing solicitors who do transfer of equity conveyancing out there...how do I know which one to select?
- My Leeds Building Society mortgage is in joint names 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. Will Leeds Building Society contact my employer to verify my salary?
- What can I do where I am dissatisfied with the lawyer who carried out our transfer of equity transaction?
- I am under the impression we would need at least AP1 and TR1. Is this true?
- My ex are seeking to get a lawyer lined up for a refinance with Leeds Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?
- I already have a mortgage with Leeds Building Society and am retaining my current mortgaging but wish to have have the equity transferred to my sole name so my ex won't be on it any longer. How long does the whole transfer of equity process take?
- As things stand I have a joint Leeds Building Society mortgage with my cousin and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
Questions that your conveyancer is likely to ask about your Leeds Building Society Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Is the transfer of equity subject to a court order? If yes please supply a copy
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in supporting the above Leeds Building Society transfer of equity Advice :
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 premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 is dependent on the market value of the property at finalisation 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.