Legal & General Home Finance transfer of equity example support desk enquires

• My brother and I got a joint mortgage with Legal & General Home Finance on a property a couple of years ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any problem with Legal & General Home Finance with him being responsible for the total mortgage as opposed to only part of it?
• What do I do if I am unhappy with the conveyancing solicitor who did our transfer of equity transaction?
• Will I incur any charges for a Transfer of Equity where the current home loan is with Legal & General Home Finance?
• Legal & General Home Finance have just agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership of the house on top?
• I am completing a Legal & General Home Finance transfer of equity application and have arrived at the section concerning defaults etc. There are some debts that I have been discharging since 2008, I understand that they no longer remain my credit records. Am I obliged to reveal these?
• I am refinancing my home in Heathfield does my lawyer need to be on the Legal & General Home Finance Conveyancing panel. The conveyancing also involves a transfer of equity.
• My decree absolute has gone through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Legal & General Home Finance mortgage. I have asked Legal & General Home Finance for the transfer of equity application. What happens next?

Information that may be required from your lawyer could ask about your Legal & General Home Finance Transfer of Equity

General Advice to read in in addition to the above Legal & General Home Finance transfer of equity Info :

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 premises

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 complied with you may be in breach 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 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 valuation of the property at finalisation 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 conveyancing solicitor 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.