Landmark transfer of equity example support desk enquires

• I already have a home loan with Landmark and am retaining my existing mortgaging but applying to have have the equity transferred to my sole name so my former partner will come off the deeds. How long can it take for the application to be processed?
• As things stand I have a joint Landmark mortgage with my brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is in the region 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
• Can you tell me how to have someone removed off the deeds to a property if the mortgage is with Landmark
• I am filling out a Landmark transfer of equity application and have come to the section concerning defaults etc. There are some debts that I have been reducing for a number of years, in fact they have long since disappeared from my credit score. Do I need to set these out?
• How do I go about adding or removing names (transfer of equity) to or from my Landmark mortgage account?
• Me and my partner co-own a flat in Heathfield . Mortgage is with Landmark. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be simple?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Landmark?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Landmark Transfer of Equity

Caveats to be read in in addition to the above Landmark 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 Landmark 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 require that you have a license to do so from the landlord. If such restrictions are not strictly observed 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 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 lawyer will check with Landmark 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 Landmark 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 Landmark 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 Landmark 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 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.