Top seven questions relating to Habito transfer of equity

• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Habito?
• Is it sensible to cancel my mortgage payments with Habito once a date for my remortgage and transfer of equity has been set?
• Have recently split up with my partner of thirty years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What portion do I get. Is it half of the equity after paying off the mortgage with Habito? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
• My Habito home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Habito have consented to the transfer of equity to me solely. Will Habito call my employer to confirm my salary?
• I am are seeking to find a dependable conveyancing lawyer to assist in a transfer of equity and refinance with Habito. I I am fearful of appointing the wrong one and there are lots of conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
• My financial adviser has suggested using their lawyer for our Transfer of Equity plus remortgage with Habito - won’t it be better to just instruct them?
• What if my application doesn't meet Habito lending criteria for a transfer of equity?

Information that may be required from your conveyancer is likely to ask in relation to your Habito Transfer of Equity

General Advice to read in in addition to the above Habito 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 Habito conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, 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 conditions are not complied with you may be in violation of your covenants under 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 conveyancer 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 finalisation 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 lawyer 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.

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.