Questions and answers: LendInvest transfer of equity
- After three years estranged I have opted to give up my share of our flat to my husband who is re-mortgaging with LendInvest. Can a transfer of equity be done inside 28 days?
- My former wife are planning to get a lawyer in place for a new mortgage with LendInvest. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over England and Wales. Do we need to instruct a conveyancing solicitor local to us?
- Me and my partner co-own a property in Sedgefield
. Home loan is with LendInvest. I want to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be simple?
- My father died last May leaving a unencumbered bungalow to me and my brother 50:50. Having continues to reside at the premises, there was a clause in the will saying the housecould not be sold for 2 years following her passing so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my half from me?
- I currently have a joint LendInvest mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a place with my partner. The remaining mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- LendInvest have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- At what stage do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my home in my name alone which is happening simultaneously with a switching mortgage with LendInvest?
Questions that your conveyancer is likely to ask in relation to your LendInvest Transfer of Equity
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person 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.
Is the transfer of equity subject to a court order? If yes please supply a copy
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?
Is it the case that one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider in conjunction with the above LendInvest transfer of equity Advice :
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 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 potentially result in 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 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 market value of the property at finalisation 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 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.
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.