Frequently asked questions relating to Legal & General Home Finance transfer of equity

• Me and my partner co-own a house in Friern Barnet . Home loan is with Legal & General Home Finance. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?
• I bought a flat with my cousin five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Legal & General Home Finance mortgage. There is a significant difference between the value the Legal & General Home Finance say and what the property would sell for currently. Can you offer any advice?
• Legal & General Home Finance have today agreed I can take over the home loan on the flat. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house in addition?
• I am planning on removing a name from a joint mortgage and the Legal & General Home Finance require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Legal & General Home Finance conveyancing panel.
• My former husband are planning to get a lawyer lined up for a new mortgage with Legal & General Home Finance. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Is it important to have a conveyancing solicitor local to us?
• At what stage do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is happening at the same time as a remortgage with Legal & General Home Finance?
• How do I go about adding or subtracting names (transfer of equity) to or from my Legal & General Home Finance mortgage account?

Sample of questions in a conveyancer form concerning a Legal & General Home Finance Transfer of Equity

Caveats to be read in conjunction with the above Legal & General Home Finance transfer of equity Info :

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

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 valuation of the property at finalisation of the transfer of equity conveyancing.

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

When it comes to preparing the the Land Registry documents your lawyer 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 conveyancing solicitor 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.