Frequently asked questions relating to LiveMore transfer of equity
- I acquired a property with a friend in 2010 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the LiveMore mortgage. There is a meaningful difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- Have recently separated from my ex of twenty years. I'm now living with my parents again and she wants to remain in the flat and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the mortgage with LiveMore? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
- How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to LiveMore - and have been quoted Three Hundred pounds including VAT by LiveMore's approved conveyancing solicitor, Have I been over quoted?
- I jointly own a property in Miles Platting
, with a LiveMore loan with my former partner. Him and his fiance are going to acquire my share. We had consent from LiveMore to remove my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for LiveMore (supposedly). Can we do the Land Registry formalities?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with LiveMore?
- I got my Decree Absolute three years ago. I simply never dealt with the transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. LiveMore is happy to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- I already have a mortgage with LiveMore and am retaining my current mortgaging but seeking to have have the equity transferred to my name alone so my former wife won't be on it any longer. How long can it take for the paperwork to be processed?
Sample of information requested in a conveyancer questionnaire concerning a LiveMore Transfer of Equity
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 confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Where you are adding someone 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.
Please give the details of anyone to be added to the property title?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
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?
Caveats to be read in in addition to 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 premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 the time of completion 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.
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.