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Frequently asked questions relating to LiveMore transfer of equity

  • As things stand I have a joint LiveMore mortgage with my brother and am investigating the feasibility 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 approx 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty payable?
  • My existing mortgage is with LiveMore. Can I transfer equity to someone under 18 years old?
  • I bought a house with my cousin six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the LiveMore mortgage. There is a significant difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
  • At what stage do I incur the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is happening simultaneously with a remortgage via LiveMore?
  • After three years apart I have opted to transfer my interest in the house to my husband who is re-mortgaging with LiveMore. Could this transfer of equity be completed inside four weeks?
  • My partner and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. Assuming LiveMore are content with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • Is it sensible to stop the direct debit for my mortgage with LiveMore as soon as a date for my remortgage and transfer of equity has been set?

Examples of questions in a conveyancing solicitor questionnaire relating to LiveMore Transfer of Equity

Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

Who will be responsible for the costs of the Transfer of Equity?

Please provide the name(s) and addresse(s) of those who jointly own the premises with you?

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Caveats to be read in supplemental the above LiveMore transfer of equity Questions and Answers :

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 LiveMore conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. 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.

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 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 LiveMore 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 LiveMore 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 valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with LiveMore your property may be repossessed.

Preparing the Transfer of Equity with a LiveMore 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 LiveMore 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.

Information contained within 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.


Frequently asked questions relating to LiveMore transfer of equity