Common questions relating to Accord Buy to Let transfer of equity

• I am under the impression we would need at least AP1 and TR1. Is this true?
• I currently have a joint Accord Buy to Let mortgage with my step-brother and am investigating the option of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a property with my fiance. The remaining mortgage is about 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
• What are the average solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Accord Buy to Let - and have been quoted £350 including VAT by Accord Buy to Let's appointed lawyer, Is this is a good price or not?
• I jointly own a flat in Friern Barnet , with a Accord Buy to Let mortgage with my former husband. He and his new partner are going to buy me out. We had approval from Accord Buy to Let to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Accord Buy to Let (supposedly). Is it possible for us to do the Land Registry change?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Accord Buy to Let?
• How and when do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my house in my sole name which is happening at the same time as a remortgage via Accord Buy to Let?
• I got my Decree Absolute in 2011. For some reason I never dealt with the transfer ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Accord Buy to Let is content to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?

Information that may be required from your conveyancing solicitor may ask in relation to your Accord Buy to Let Transfer of Equity

Caveats to be read in further to the above Accord Buy to Let 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 Accord Buy to Let conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 restrictions are not strictly observed you may be in breach 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 pursuant to 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 Accord Buy to Let 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 Accord Buy to Let 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Accord Buy to Let 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 Accord Buy to Let 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 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.