Top seven questions relating to Leek United BS transfer of equity
- My partner and I co-own a house in Friern Barnet
. Mortgage is with Leek United BS. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?
- My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity for the property and the Leek United BS mortgage. I have called Leek United BS for the transfer of equity forms. What are my next steps?
- What are my options where I am dissatisfied with the conveyancing solicitor who handled our transfer of equity conveyancing?
- My fiance and I jointly own a buy to let. I am a top rate tax payer. Ideally I wish 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? Would my GGT relief be lost.
- I already have a mortgage with Leek United BS and am maintaining my current mortgaging but seeking to have have the equity transferred to my name only so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
- I am am in need of a lawyer to deal with my transfer of equity. Leek United BS have been approached for a remortgage. I considered asking my mortgage broker. I am lead to believe he will likely get a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- Taking into account that we have been 5 years estranged I have made the decision to relinquish up my interest in our flat to my husband who is re-mortgaging with Leek United BS. Can a transfer of equity be done inside one month?
Information that may be required from your conveyancer is likely to ask regarding your Leek United BS Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Have you approached Leek United BS to seek consent to the Transfer of Equity
Please give the details of anyone to be extracted from the property title?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
General Advice to read in further to the above Leek United 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 United BS conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation 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 market value of the property at the conclusion 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 conveyancing solicitor 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 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.