Top seven questions relating to LiveMore transfer of equity
- I already have a mortgage with LiveMore and am retaining my current mortgaging but wish to have have the equity transferred to my name alone so my ex will be removed from the deeds. How long can it take for the paperwork to be processed?
- How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place at the same time as a refinancing via LiveMore?
- Will I incur any charges for a Transfer of Equity where the current mortgage is with LiveMore?
- I am are seeking to find a value for money conveyancing lawyer to assist in a transfer of equity and refinance with LiveMore. I I am concerned about by bill escalating out of control but with lots of conveyancing organisations who do transfer of equity conveyancing out there...how do I know which is best appoint?
- My mum died seven months ago leaving a unencumbered property to me and my brother equally. Having continues to reside at the house, there was a condition in her will specifying that the housecould not be sold for 24 months after her passing so he could continue to live there for a while. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to acquire my equity?
- My financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with LiveMore - won’t it be better to just instruct them?
- I jointly own a flat in Rye
, with a LiveMore mortgage with my former partner. Him and his new partner are going to buy me out. We had consent from LiveMore to replace my name with hers. The transfer of equity has to be completed by a lawyer for LiveMore (supposedly). Is it possible for us to deal with the Land Registry change?
Information that may be required from your lawyer could ask in relation to your LiveMore Transfer of Equity
Have you approached LiveMore to obtain consent to the Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Has one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
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?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Where you are adding a person 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.
Important warnings to consider in supplemental 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
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could trigger 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 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 conveyancing solicitor 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 valuation of the property at the conclusion 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 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 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.