LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
LiveMore

Top seven questions relating to LiveMore transfer of equity

  • My fiance and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to mitigate tax on rental income. If LiveMore are content with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • I co-own a house in Miles Platting , with a LiveMore mortgage with my ex husband. Him and his new partner are going to acquire my share. We had approval from LiveMore to remove my name with hers. The transfer of equity has to be done by a lawyer for LiveMore (apparently). In order to save fees can I do the Land Registry formalities?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • Can I transfer the equity held in my property with my LiveMore mortgage?
  • After 4 years separated I have decided to relinquish up my interest in our apartment to my husband who is refinancing with LiveMore. Could this transfer of equity be completed in one month?
  • Last year bought a property without my fiance’s name on the title. My conveyancing solicitor claimed it is due to the fact that she is not in the loan offer with LiveMore. Is it possible for me to add her name on the title?
  • What if my application doesn't meet LiveMore lending criteria for a transfer of equity?

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

Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

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

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

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

General Advice to read in supporting the above LiveMore 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 LiveMore conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, 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 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 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 lawyer 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 provided 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 LiveMore transfer of equity