Top seven questions relating to LendInvest transfer of equity
- I am in the process of removing a name from a joint mortgage and the LendInvest need me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Heathfield
conveyancing solicitor to deal with the transfer of equity? They need to be on the LendInvest conveyancing panel.
- My mother died seven months ago leaving a unencumbered house to me and my step brother 50:50. Having continues to reside at the premises, there was a condition in her will specifying that the propertycould not be sold for 2 years after her death 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. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to buy my equity?
- When it comes to transfer of equity conveyancing involving a remortgage with LendInvest should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am selling my equity in flat in Warwick to the other co-owners fiance, they are reapplying to LendInvest. We are debating as to who should cover the costs of the transfer of equity. Is this normally shared or is one of us obliged to cover the charges for?
- Law week I separated from my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and pay me off. What portion do I get. Is it 50% of the equity after paying off the mortgage with LendInvest? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being walked over
- Can I transfer the equity held in my property with my LendInvest mortgage?
- My divorce has gone through as is the consent order. Now I have to address the transfer of equity at the land registry and the LendInvest home loan. I have asked LendInvest for the transfer of equity application. What happens next?
Sample of questions in a lawyer form concerning a LendInvest Transfer of Equity
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Is the transfer of equity subject to a court order? If yes please supply a copy
Has consent been obtained from LendInvest to the proposed transfer of equity?
If 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.
If 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?
Please list all persons who occupy the property, their respective ages and relationships to you.
Important warnings to consider in conjunction with the above LendInvest transfer of equity Info :
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 freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 conveyancer 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 valuation of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with LendInvest.
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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.