LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Halifax

Top seven questions relating to Halifax transfer of equity

  • Have recently split up with my partner of 18 years. I'm now living with my parents again and she wants to remain in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after redeeming the Halifax home loan? I assume proper valuations are necessary but I really need to be sure that I'm getting what I am entitled to
  • Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Halifax?
  • My Halifax home loan we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Halifax have consented to the transfer of equity to me solely. Do Halifax get in touch with my employer to verify my salary?
  • Halifax yesterday agreed I can take over the home loan on the house. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
  • I acquired a property with my cousin in 2010 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Halifax mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • As things stand I have a joint Halifax mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy a place with my fiance. The remaining mortgage is about 200k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
  • Is it sensible to stop my mortgage payments with Halifax once a date for my remortgage and transfer of equity has been agreed?

Questions that your conveyancing solicitor is likely to ask in relation to your Halifax Transfer of Equity

Please provide the details of anyone to be added to the property title?

Please give the name(s) and addresse(s) of those who jointly own the premises with you?

Has one of the registered owners died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Who will be responsible for the costs of the Transfer of Equity?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Important warnings to consider in further to the above Halifax transfer of equity Advice :

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 Halifax conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 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 conveyancing solicitor will check with Halifax 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 Halifax 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 varies based on the market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Halifax your property may be repossessed.

Preparing the Transfer of Equity with a Halifax Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Halifax 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.


Frequently asked questions relating to Halifax transfer of equity