Frequently asked questions relating to LendInvest transfer of equity
- I plan to remortgage my maisonette in Heathfield
changing from Leeds Building Society to LendInvest. The home is currently in joint names but propose for it to be in my sole name when I remortgage. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- My father passed away last January leaving a mortgage-free house to me and my half brother 50:50. He has always lived in the house, there was a condition in her will saying the premisescould not be sold for 24 months after her passing so he could reside there for a specified time frame. He now says he would like to remain in the house beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my half from me?
- I co-own a apartment in Romsey
, with a LendInvest loan with my former husband. Him and his new partner are going to buy me out. We had consent from LendInvest to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for LendInvest (supposedly). In order to save fees can I deal with the Land Registry change?
- Will I have to pay any fees for a Transfer of Equity where the current mortgage is with LendInvest?
- How do I go about adding or subtracting names (transfer of equity) to or from my LendInvest mortgage account?
- Taking into account that we have been 2 a couple of years estranged I have decided to give up my share of the house to my husband who is refinancing with LendInvest. Could this transfer of equity be completed in less than 28 days?
- I am transferring my share of a apartment in Woodside to my co-owners fiance, they are reapplying to LendInvest. We are debating as to who should cover the legal bill for the transfer of equity. Is this normally shared or is one party obliged to cover the charges for?
Sample of questions in a conveyancing solicitor form concerning a LendInvest Transfer of Equity
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Has consent been obtained from LendInvest to the proposed transfer of equity?
Please clarify where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Is the transfer of equity subject to a court order? If yes please supply a copy
Caveats to be read in further to the above LendInvest transfer of equity Advice :
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 LendInvest conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and 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 as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 LendInvest 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 LendInvest 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 finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with LendInvest your property may be repossessed.
Preparing the Transfer of Equity with a LendInvest 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 LendInvest 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.