Examples of recent questions relating to Leek BS transfer of equity

• As things stand I have a joint Leek BS mortgage with my brother and am investigating the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
• I am hoping to refinance my maisonette in Romsey changing from Nationwide to Leek BS. The apartment is jointly owned but wish for it to be in my name only once I transfer. My husband has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancing solicitor fees.
• I am thinking of remortgaging my apartment in Timperley does my lawyer need to be on the Leek BS Conveyancing panel. The conveyancing also involves a transfer of equity.
• At what stage do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is taking place at the same time as a switching mortgage via Leek BS?
• I am completing a Leek BS transfer of equity application and have arrived at the part concerning debts etc. I do some debts that I have been reducing since 2007, in fact they have long since disappeared from my credit rating. Do I need to set these out?
• My dad passed away early last year leaving a unencumbered bungalow to me and my half brother in equal shared. Having continues to reside at the house, there was a condition in her will specifying that the propertycould not be sold for three years after her death so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to buy my share?
• I purchased a house with my cousin in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Leek BS mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Questions that your conveyancer may ask about your Leek BS Transfer of Equity

General Advice to read in further to the above Leek BS transfer of equity information :

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 Leek BS conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is 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 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 conveyancer will check with Leek BS 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 Leek BS 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 transaction.

Preparing the Transfer of Equity with a Leek BS 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 Leek BS 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.

Information provided 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.