Sample questions relating to Legal & General Home Finance transfer of equity

• I bought a flat with my brother in 2008 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Legal & General Home Finance mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I already have a home loan with Legal & General Home Finance and am retaining my current mortgaging but wish to have have the equity transferred to my name only so my former husband won't be on it any longer. How long can it take for the forms to be processed?
• Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Legal & General Home Finance?
• Is it possible to transfer the equity held in my property with my Legal & General Home Finance mortgage?
• I currently have a joint Legal & General Home Finance mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is land tax due?
• My dad passed away seven months ago leaving a unencumbered house to me and my brother equally. Having continues to reside at the house, there was a condition in the will saying the premisescould not be sold for three years following her death so he could continue to live there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to acquire my equity?
• Having been 2 a couple of years separated I have made the decision to relinquish up my share of our house to my husband who is refinancing with Legal & General Home Finance. Could this transfer of equity be completed within one month?

Questions that your conveyancer is likely to ask about your Legal & General Home Finance Transfer of Equity

General Advice to read in conjunction with the above Legal & General Home Finance 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 Legal & General Home Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of 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 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 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 varies based on the market value of the property at the time of completion 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 conveyancing solicitor 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.