Questions and answers: Leeds Building Society transfer of equity

• What if my application doesn't meet Leeds Building Society lending criteria for a transfer of equity?
• Me and my partner co-own a flat in Witham . Mortgage is with Leeds Building Society. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be simple?
• My former wife are looking to get a lawyer lined up for a remortgage with Leeds Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over the country. Is it important to instruct a conveyancing solicitor local to us?
• Our mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Leeds Building Society - won’t it be better to just use them?
• I plan to refinance my maisonette in Friern Barnet moving from Coventry BS to Leeds Building Society. The maisonette is currently in joint names but wish for it to be in my sole name when I remortgage. My husband has verbally consented to this and is willing to sign a form but neither of us want to incur lawyer fees.
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Leeds Building Society?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Leeds Building Society mortgage account?

Questions that your lawyer is likely to ask about your Leeds Building Society Transfer of Equity

Important warnings to consider in further to the above Leeds Building Society 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 Leeds Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require 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 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 conveyancer will check with Leeds Building Society 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 Leeds Building Society 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 transaction.

Preparing the Transfer of Equity with a Leeds Building Society 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 Leeds Building Society 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 contained within 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.