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LendInvest transfer of equity example support desk enquires

  • I am looking for a conveyancer to deal with my transfer of equity. LendInvest are dealing with the remortgage. I considered asking my financial adviser. I am lead to believe he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
  • Law month I separated from my partner of 18 years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after redeeming the LendInvest home loan? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
  • I purchased a property with my cousin in 2009 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the LendInvest mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • How do I go about adding or subtracting names (transfer of equity) to or from my LendInvest mortgage account?
  • What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with LendInvest - and have been quoted £350 excluding VAT by LendInvest's approved lawyer, Is this a reasonable price?
  • LendInvest yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house on top?
  • Me and my partner jointly own a house in Timperley . Mortgage is with LendInvest. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?

Sample of information requested in a conveyancing solicitor questionnaire concerning a LendInvest Transfer of Equity

Has consent been obtained from LendInvest to the proposed transfer of equity?

If are intent on holding 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 confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

General Advice to read in further to the above LendInvest transfer of equity Questions and Answers :

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

If your property is 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 restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 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 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.

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