Questions and answers: Leeds Building Society transfer of equity
- I got divorced in 2010. I simply never got around to change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Leeds Building Society is content to transfer the property and loan in my name (financial checks done). Does she need a lawyer?
- I am in the process of removing a name from a joint mortgage and the Leeds Building Society need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Witham
conveyancer to deal with the transfer of equity? They need to be on the Leeds Building Society conveyancing panel.
- I am selling my equity in house in Hendon to the other co-owners husband, they are sticking with Leeds Building Society as the the existing mortgage company. We are debating as to who must pay the costs of the transfer of equity. Should this be split or is one party liable for the legal bill?
- As things stand I have a joint Leeds Building Society mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is about 250k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?
- My ex-fiance and I are are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Leeds Building Society. I I am concerned about by bill escalating out of control and there's many conveyancing firms who do transfer of equity conveyancing out there...who's the best?
- What if my application doesn't meet Leeds Building Society lending criteria for a transfer of equity?
- I am in the process of mortgaging my flat in Winchelsea
does my lawyer have to be on the Leeds Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
Information that may be required from your conveyancing solicitor is likely to ask about your Leeds Building Society Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Is it the case that one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the details of anyone to be removed from the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Important warnings to consider in further to 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 properties
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 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 varies based on the valuation 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 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.
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.