Common questions relating to Leek United BS transfer of equity
- In 2011 I purchased a flat without my fiance’s name on the ownership paperwork. My conveyancer advised it is due to the fact that she was not in the mortgage with Leek United BS. Is it possible for me to add her name on the title?
- Have recently split up with my ex of thirty years. I'm now living with my parents again and she wishes to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the Leek United BS home loan? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
- What can I do where I am not happy with the conveyancer who carried out my transfer of equity transaction?
- I got my Decree Absolute in 2010. Foolishly I never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Leek United BS is happy to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
- Leek United BS yesterday agreed I can take over the home loan on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
- My fiance and myself equally own a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on rental income. If Leek United BS are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- Is it sensible to cancel my mortgage payments with Leek United BS as soon as a date for my remortgage and transfer of equity has been set?
Questions that your lawyer is likely to ask in relation to your Leek United BS Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone to be added to the title deeds?
Have you approached Leek United BS to seek consent to the Transfer of Equity
Please confirm if you are making any payment for the Transfer of Equity and to whom and give details of the amount?
Caveats to be read in in addition to the above Leek United BS transfer of equity Advice :
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 properties
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Leek United BS.
Preparing the Transfer of Equity with a Leek United BS Mortgage
When it comes to preparing the the Land Registry documents your lawyer 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 lawyer 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 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.