Sample questions relating to LendInvest transfer of equity
- I am hoping to remortgage my flat in Timperley
switching from Bank of Scotland to LendInvest. The home is jointly owned but propose for it to be in my name only as and when I switch. My husband has verbally consented to this and is willing to transfer equity but neither of us want to incur lawyer charges.
- Can I transfer the equity held in my property with my LendInvest home loan?
- As things stand I have a joint LendInvest mortgage with my step-brother and am looking into the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
- My former wife are seeking to get a lawyer lined up for a new mortgage with LendInvest. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over England and Wales. Is it important to have a conveyancing solicitor local to us?
- 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
lawyer to deal with the transfer of equity? They need to be on the LendInvest conveyancing panel.
- LendInvest have today agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
- My wife and I equally own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name in order mitigate tax on rental income. If LendInvest are fine with this the legal fees are not prohibitive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
Information that may be required from your conveyancing solicitor may ask about your LendInvest Transfer of Equity
Can you give the details of anyone who jointly owns the property with you?
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 give the name(s) and addresse(s) of anyone to be added to the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
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 what figure
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Information to consider in supplemental the above LendInvest transfer of equity information :
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 properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. 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 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 conclusion of the transfer of equity conveyancing.
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 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 conveyancing solicitor 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 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.