Landbay Partners transfer of equity example support desk enquires

• I own a house in Littleborough , with a Landbay Partners mortgage with my ex partner. Him and his fiance are going to acquire my share. We had the go ahead from Landbay Partners to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Landbay Partners (apparently). In order to save fees can I deal with the Land Registry formalities?
• My mother died early last year leaving a unencumbered semi to me and my step brother 50:50. He has always lived in the house, there was a condition in her will specifying that the premisescould not be sold for 2 years after her death so he could remain there for a prescribed period. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
• I am selling my share of a apartment in Warwick to the other co-owners husband, they are sticking with Landbay Partners as the the existing lender. We are debating as to who must pay the charges for the transfer of equity. Is this usually shared or is one of us liable for the fees for?
• My partner and I have equal shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming Landbay Partners are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• I am under the impression we would need at least AP1 and TR1. Is this true?
• My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Landbay Partners mortgage. I have asked Landbay Partners for the transfer of equity application. What happens next?
• Will I incur any fees for a Transfer of Equity where the current home loan is with Landbay Partners?

Questions that your lawyer is likely to ask in relation to your Landbay Partners Transfer of Equity

Important warnings to consider in in addition to the above Landbay Partners transfer of equity Advice :

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 Landbay Partners 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 have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could potentially result in 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 Landbay Partners 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 Landbay Partners 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 Landbay Partners Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Landbay Partners 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.

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.