Common questions relating to LendInvest transfer of equity

• Am I best advised stop my mortgage payments with LendInvest once a date for my remortgage and transfer of equity has been set?
• I am selling my share of a property in Warwick to my co-owners fiance, they are reapplying to LendInvest. We are debating as to who should cover the costs of the transfer of equity. Should this be shared or is one party obliged to cover the charges for?
• My LendInvest home loan we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. LendInvest have consented to the transfer of equity to me solely. Do LendInvest write my employer to confirm my salary?
• My partner and I have equal shares in a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. Assuming LendInvest are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
• My brother and I got a joint mortgage with LendInvest on a flat about a year ago. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential issue with LendInvest with him being on the hook for the total mortgage as opposed to only half of it?
• My partner and I co-own a house in Winchelsea . Mortgage is with LendInvest. I would like to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be simple?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with LendInvest?

Examples of information requested in a conveyancing solicitor questionnaire relating to LendInvest Transfer of Equity

General Advice to read in supporting the above LendInvest 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 LendInvest conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a LendInvest 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 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information contained within 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.