Examples of recent questions relating to LiveMore transfer of equity

• Will I have to pay any fees for a Transfer of Equity where the existing home loan is with LiveMore?
• My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name to mitigate tax on rental income. Assuming LiveMore are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
• My LiveMore mortgage is in joint names with ex, he has agreed to be removed and let me have the property. LiveMore have consented to the transfer of equity to my individual name. Do LiveMore call my company to confirm my salary?
• Is it sensible to cancel my mortgage payments with LiveMore as soon as a date for my remortgage and transfer of equity has been set?
• Our mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with LiveMore - won’t it be better to just use them?
• How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my sole name which is taking place simultaneously with a remortgage with LiveMore?
• I am disposing of my equity in apartment in Hendon to my co-owners husband, they are reapplying to LiveMore. We are debating as to who should pay the fees for the transfer of equity. Should this be split or is one of us obliged to cover the legal bill?

Information that may be required from your conveyancer may ask in relation to your LiveMore Transfer of Equity

Caveats to be read in conjunction with 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 titles

If your property is leasehold, 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 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 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 varies based on the market value of the property at finalisation 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 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 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.