Legal & General Home Finance transfer of equity: q and a’s

• I bought a house with a friend six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Legal & General Home Finance mortgage. There is a significant difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
• Is it possible to transfer the equity held in my property with my Legal & General Home Finance home loan?
• How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Legal & General Home Finance - and have been quoted Four Hundred pounds excluding VAT by Legal & General Home Finance's approved lawyer, Is this is a good price or not?
• My ex-fiance and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Legal & General Home Finance. I am aware of the chance of getting ripped off but with many conveyancing organisations who do transfer of equity conveyancing out there...how do I know which is best appoint?
• I am selling my share of a property in Woodside to my co-owners husband, they are sticking with Legal & General Home Finance being the the existing lender. We are debating as to who should cover the costs of the transfer of equity. Should this be shared or is one party obliged to cover the fees for?
• Two years ago I purchased a flat without my partner's name on the title. My conveyancer said it is due to the fact that she was not in the mortgage with Legal & General Home Finance. I'm wondering is there any way that I can put her name on the deeds?
• My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity for the property and the Legal & General Home Finance mortgage. I have asked Legal & General Home Finance for the transfer of equity forms. What do I do now?

Sample of questions in a conveyancer form concerning a Legal & General Home Finance Transfer of Equity

Important warnings to consider in supporting 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 premises

If your property is leasehold, provisions in 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 terms are not adhered to you may be in breach 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 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 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 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.