Examples of recent questions relating to Habito transfer of equity

• How much the typical legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Habito - and have been quoted £250 excluding VAT by Habito's approved conveyancing solicitor, Is this a reasonable price?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• My fiance and myself equally own a investment property. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name to reduce our tax on rental income. If Habito are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Habito?
• My former wife are seeking to get a conveyancing solicitor lined up for a new mortgage with Habito. Transfer of Equity conveyancing is also neededI have used the different comparison based tools and the results are from all over the country. Is it important to instruct a conveyancer local to us?
• I am filling out a Habito transfer of equity application and have come to the questions concerning debts etc. There are some debts that I have been reducing over a long period, I understand that they have long since disappeared from my credit score. Must I declare these?
• Me and my partner jointly own a house in Friern Barnet . Mortgage is with Habito. I would like to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be easy to so?

Sample of questions in a conveyancing solicitor form concerning a Habito Transfer of Equity

Important warnings to consider in supplemental the above Habito 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 Habito 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 require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach 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 as a result of 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 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 market value of the property at the conclusion 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.

Information provided 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.