Examples of recent questions relating to Legal & General Home Finance transfer of equity

• My partner and myself have equal shares in a investment property. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name to mitigate tax on rental income. Assuming Legal & General Home Finance are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
• I am thinking of remortgaging my property in Ampthill does my lawyer have to be on the Legal & General Home Finance Solicitor panel. The conveyancing also involves a transfer of equity.
• Can I apply to request a further advance from Legal & General Home Finance as part of a Transfer of Equity?
• My decree absolute has gone through as is the consent order. Now I have to sort out the transfer of equity for the property and the Legal & General Home Finance mortgage. I have asked Legal & General Home Finance for the transfer of equity forms. What are my next steps?
• I currently have a joint Legal & General Home Finance mortgage with my step-brother and am looking into the option of him taking on the outstanding mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is approx 250k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
• Can you tell me how to have a person removed from the title documents to a property if the home loan is with Legal & General Home Finance
• Two years ago I bought a flat without my fiance’s name on the title documents. My conveyancing solicitor said it is due to the fact that she was not in the loan offer with Legal & General Home Finance. Is it possible for me to add her name on the documents at HMLR?

Examples of information requested in a lawyer questionnaire concerning a Legal & General Home Finance Transfer of Equity

Information to consider in supplemental the above Legal & General Home Finance transfer of equity Questions and Answers :

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 Legal & General Home Finance 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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation 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 situations, 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 Legal & General Home Finance 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 Legal & General Home Finance 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 transaction.

Preparing the Transfer of Equity with a Legal & General Home Finance 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 Legal & General Home Finance 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 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.