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Leek United BS

Common questions relating to Leek United BS transfer of equity

  • As things stand I have a joint Leek United BS mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 250k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty payable?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Leek United BS?
  • My divorce is through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Leek United BS mortgage. I have contacted Leek United BS for the transfer of equity forms. What do I do now?
  • My current home loan is with Leek United BS. Can I transfer equity to someone less than 18 years old?
  • At what point do I pay the Stamp Duty Land Tax payable for the transfer of equity in my house in my sole name which is taking place simultaneously with a remortgage with Leek United BS?
  • Law month I separated from my wife of thirty years. I'm now living with my parents again and she wishes to remain in the property and pay me off. What portion do I get. Is it half of the equity after discharging the mortgage with Leek United BS? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
  • I am refinancing my apartment in Dunnington does my lawyer need to be on the Leek United BS Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your conveyancing solicitor may ask in relation to your Leek United BS Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?

Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Have you approached Leek United BS to obtain consent to the Transfer of Equity

Please provide a copy of your National Insurance Number?

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

Please give the details of anyone to be added to the title deeds?

Important warnings to consider in further to the above Leek United BS transfer of equity information :

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 Leek United BS conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under 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 United 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 United 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.
If you do not keep up the payments on your mortgage with Leek United BS your property may be repossessed.

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


Frequently asked questions relating to Leek United BS transfer of equity