Common questions relating to LendInvest transfer of equity

• I already have a home loan with LendInvest and am keeping my current mortgaging but applying to have have the equity transferred to my name alone so my ex will be removed from the deeds. How long can it take for the paperwork to be processed?
• My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with LendInvest - Surely it’s advisable to just use them?
• I am disposing of my equity in house in Hendon to the other co-owners husband, they are reapplying to LendInvest. We are haggling as to who must cover the costs of the transfer of equity. Should this be split or is one of us obliged to cover the costs of?
• Is it possible to apply to borrow more money from LendInvest as part of a Transfer of Equity?
• Law week I split up with my ex of 18 years. I'm now back with my mum and dad and she wishes to stay in the property and buy me out. What portion do I get. Is it half of the equity after discharging the LendInvest home loan? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to
• Is there such a thing a transfer of equity stamp duty calculator?
• After 5 years estranged I have decided to transfer my share of our property to my husband who is refinancing with LendInvest. Can a transfer of equity be completed in less than four weeks?

Sample of information requested in a conveyancer form relating to LendInvest Transfer of Equity

Information to consider in further to the above LendInvest 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 LendInvest 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 have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 conveyancing solicitor will check with LendInvest 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 LendInvest 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a LendInvest 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 LendInvest 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.