Frequently asked questions relating to LiveMore transfer of equity

• Been reviewing consumer blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and at the same time refinancing with LiveMore
• As things stand I have a joint LiveMore mortgage with my step-brother and am looking into the option of him taking on the whole mortgage and removing myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is approx 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty due?
• Given that we have been 2 a couple of years apart I have opted to give up my share of the apartment to my husband who is re-mortgaging with LiveMore. Could this transfer of equity be done within one month?
• Law week I separated from my ex of twenty years. I'm now living with my parents again and she wishes to remain in the property and buy me out. What percentage do I get. Is it half of the equity after redeeming the mortgage with LiveMore? I assume proper valuations are required but I would like ensure that I'm getting the best deal
• I bought a property with my cousin in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the LiveMore mortgage. There is a 40k difference between the value the LiveMore hold and what the property would sell for currently. Can you offer any advice?
• My divorce is through as is the consent order. Now I must address the transfer of equity for the property and the LiveMore mortgage. I have contacted LiveMore for the transfer of equity application. What happens next?
• My brother and I got a joint mortgage with LiveMore on a apartment a couple of years ago. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any issue with LiveMore with him being responsible for the total mortgage rather than only half of it?

Examples of information requested in a conveyancer form relating to LiveMore Transfer of Equity

Important warnings to consider in in addition to 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 properties

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 pursuant to 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 conveyancer 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 market value of the property at the time of completion of the transfer of equity transaction.

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 lawyer 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.