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

• I understand we would need at least AP1 and Transfer Deed. Is this true?
• I co-own a property in Heathfield , with a Legal & General Home Finance mortgage with my ex husband. Him and his new partner are going to acquire my share. We had the go ahead from Legal & General Home Finance to replace my name with hers. The transfer of equity has to be done by a lawyer for Legal & General Home Finance (supposedly). In order to save fees can I do the Land Registry change?
• Law month I separated from my partner of 18 years. I'm now back with my parents again and she wants to stay in the flat and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the Legal & General Home Finance home loan? I assume proper valuations are required but I really need to be confident that I'm getting I am not being taken advantage of
• Can I apply to request more money from Legal & General Home Finance as part of a Transfer of Equity?
• My Legal & General Home Finance home loan is in joint names with ex, who is agreeable to come off the mortgage and let me have the property. Legal & General Home Finance will permit the transfer of equity to me solely. Will Legal & General Home Finance contact my boss to check my salary?
• As things stand I have a joint Legal & General Home Finance mortgage with my cousin and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is approx 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
• Is there such a thing a transfer of equity stamp duty calculator?

Sample of questions in a conveyancing solicitor questionnaire concerning a Legal & General Home Finance Transfer of Equity

General Advice to read in supporting the above Legal & General Home Finance transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, 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 your covenants under the lease. This could trigger 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 lawyer 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 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.