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Examples of recent questions relating to LendInvest transfer of equity

  • My partner and myself have equal shares in a buy to let. 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 LendInvest are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
  • LendInvest 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 at HMLR as well?
  • I purchased a property with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the LendInvest mortgage. There is a meaningful difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and simultaneously remortgaging with LendInvest
  • I currently have a joint LendInvest mortgage with my step-brother and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is land tax due?
  • I am completing a LendInvest transfer of equity form and have arrived at the section concerning debts etc. I do some debts that I have been paying off over a long period, I understand that they no longer remain my credit score. Must I declare these?

Questions that your conveyancer may ask in relation to your LendInvest Transfer of Equity

Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please give the details of those who jointly own the premises with you?

Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Please give the details of anyone to be removed from the property title?

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?

General Advice to read in supplemental the above LendInvest transfer of equity Info :

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 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 obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
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 conveyancer 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 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.


Frequently asked questions relating to LendInvest transfer of equity