Habito transfer of equity example support desk enquires

• My brother and I got a joint mortgage with Habito on a house about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any concerns with Habito with him being responsible for the total loan as opposed to only part of it?
• As things stand I have a joint Habito mortgage with my step-brother and am looking into the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to buy a place with my partner. The remaining mortgage is about 175k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty payable?
• My existing mortgage is with Habito. Can I transfer equity to someone less than 18 years old?
• I already have a home loan with Habito and am maintaining my existing mortgaging but applying to have it in my name alone so my ex will come off the mortgage. How long can it take for the application to be processed?
• Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with Habito?
• Me and my former fiance and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Habito. I I am fearful of being overcharged and there are various conveyancing firms who do transfer of equity conveyancing out there...how do I know which one to appoint?
• Been looking at consumer blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously remortgaging with Habito

Information that may be required from your conveyancing solicitor is likely to ask regarding your Habito Transfer of Equity

Information to consider in further to the above Habito 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 Habito 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 terms are not adhered to 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 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 Habito 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 Habito 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Habito 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 Habito 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.