Questions and answers: Leek BS transfer of equity

• My Leek BS home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. Leek BS will permit the transfer of equity to me solely. Do Leek BS write my boss to check my salary?
• My mother died seven months ago leaving a loan-free bungalow to me and my half brother equally. He has always lived in the premises, there was a provision in the will saying the propertycould not be sold for three years following her passing so he could reside there for a prescribed period. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to buy my half from me?
• Is it possible to apply to request a further advance from Leek BS as part of a Transfer of Equity?
• When it comes to transfer of equity conveyancing involving a remortgage with Leek BS should I be charged value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• I am am in need of a conveyancing solicitor to handle my transfer of equity. Leek BS are dealing with the refinancing. I thought of asking my financial adviser. I understand he may get a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
• I plan to refinance my flat in Sedgefield changing from Natwest to Leek BS. The apartment is jointly owned but intend for it to be in my sole name once I transfer. My wife is OK with this and is happy to transfer equity but neither of us want to get a second lawyer involved.
• I co-own a apartment in Friern Barnet , with a Leek BS loan with my former partner. Him and his fiance are going to buy me out. We had approval from Leek BS to remove my name with hers. The transfer of equity needs to be completed by a lawyer for Leek BS (supposedly). In order to save fees can I do the Land Registry formalities?

Questions that your conveyancing solicitor could ask about your Leek BS Transfer of Equity

Important warnings to consider in conjunction with the above Leek BS transfer of equity Advice :

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 Leek BS conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 Leek BS 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 Leek BS 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Leek BS 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 Leek BS 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 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.