Questions and answers: Gen H 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 Gen H home loan. I have called Gen H for the transfer of equity forms. What do I do now?
• I am in the market for a value for money conveyancing lawyer to help me sell in a transfer of equity and refinance with Gen H. I want to avoid being ripped off and there's lots of conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Gen H?
• Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and at the same time switching mortgage with Gen H
• My brother and I got a joint mortgage with Gen H on a apartment in 2013. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential problem with Gen H with him being solely liable for the total mortgage as opposed to only part of it?
• What can I do where I am not happy with the lawyer who did my transfer of equity transaction?
• I plan to refinance my maisonette in Blaenavon moving from Lloyds TSB to Gen H. The maisonette is jointly owned but wish for it to be in my name only as and when I switch. My former partner is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor fees.

Examples of information requested in a conveyancing solicitor questionnaire relating to Gen H Transfer of Equity

Important warnings to consider in in addition to the above Gen H transfer of equity information :

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 Gen H conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 lawyer will check with Gen H 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 Gen H 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 Gen H 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 Gen H 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.

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.