Leeds Building Society transfer of equity: q and a’s

• My Leeds Building Society mortgage we jointly entered into with ex, he is agreeable to be removed and let me have the property. Leeds Building Society have consented to the transfer of equity to me solely. Do Leeds Building Society get in touch with my company to verify my salary?
• My divorce is through as is the consent order. Now I need to address the transfer of equity for the property and the Leeds Building Society mortgage. I have asked Leeds Building Society for the transfer of equity application. What happens next?
• I understand we would need at least AP1 and TR1. Is this true?
• My ex are looking to get a lawyer lined up for a refinance with Leeds Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over England and Wales. Is it important to appoint a conveyancer local to us?
• My mother passed away seven months ago leaving a unencumbered property to me and my brother 50:50. He has always lived in the house, there was a clause in her will specifying that the propertycould not be sold for 24 months after her death so he could continue to live there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my share?
• My fiance and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name in order mitigate tax on rental income. Assuming Leeds Building Society are happy with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
• Me and my partner co-own a property in Littleborough . Home loan is with Leeds Building Society. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be easy to so?

Questions that your lawyer may ask regarding your Leeds Building Society Transfer of Equity

General Advice to read in conjunction with the above Leeds Building Society transfer of equity Questions and Answers :

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

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 varies based on the market value of the property at the conclusion 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 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 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.