Recently asked questions relating to Legal & General Home Finance transfer of equity

• My former husband are seeking to get a conveyancing solicitor lined up for a remortgage with Legal & General Home Finance. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over England and Wales. Is it important to appoint a conveyancing solicitor local to us?
• Legal & General Home Finance have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Legal & General Home Finance?
• Last year purchased a house without my partner's name on the deeds. My lawyer advised it is due to the fact that she was not in the loan offer with Legal & General Home Finance. I'm wondering is there any way that I can add her name on the title?
• I am considering refinancing my apartment in Winchelsea does my lawyer need to be on the Legal & General Home Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
• I am filling out a Legal & General Home Finance transfer of equity application and have arrived at the section regarding defaults etc. There are some debts that I have been clearing since 2007, I understand that they have long since disappeared from my credit rating. Am I obliged to set these out?
• As things stand I have a joint Legal & General Home Finance mortgage with my brother and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is in the region 250k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?

Questions that your conveyancing solicitor may ask about your Legal & General Home Finance Transfer of Equity

Information to consider in in addition to the above Legal & General Home Finance transfer of equity Questions and Answers :

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 Legal & General Home Finance 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 obtain the consent of 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 Legal & General Home Finance 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 Legal & General Home Finance 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Legal & General Home Finance 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 Legal & General Home Finance 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.

Information contained within 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.