Frequently asked questions relating to LiveMore transfer of equity
- Having been four years estranged I have decided to relinquish up my interest in our flat to my husband who is refinancing with LiveMore. Can a transfer of equity be done within 28 days?
- I understand we would need at least AP1 and Transfer Deed. Is this true?
- My father died last March leaving a mortgage-free bungalow to me and my half brother in equal shared. Having continues to reside at the premises, there was a clause in her will specifying that the propertycould not be sold for 2 years after her passing so he could reside there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to purchase my equity?
- I got divorced in 2011. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. LiveMore is happy to transfer the full equity in my name (financial checks done). Does my ex need any legal representation?
- My former husband are seeking to get a conveyancing solicitor lined up for a new mortgage with LiveMore. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to appoint a conveyancing solicitor local to us?
- I am in the process of removing a name from a joint mortgage and the LiveMore need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Winchelsea
conveyancer to deal with the transfer of equity? They need to be on the LiveMore conveyancing panel.
- Me and my partner co-own a property in Winchelsea
. Home loan is with LiveMore. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be simple?
Examples of information requested in a conveyancing solicitor form concerning a LiveMore Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the title deeds?
Please provide a copy of your National Insurance Number?
Where you are going to hold 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 clarify where you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Please give the details of those who jointly own the property with you?
Important warnings to consider in supporting the above LiveMore transfer of equity information :
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, the lease may require 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 trigger 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with LiveMore.
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.
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.