Common questions relating to Halifax transfer of equity
- What if my application doesn't meet Halifax lending criteria for a transfer of equity?
- I am selling my share of a property in Birmingham to the other co-owners husband, they are reapplying to Halifax. We are in heated discussion as to who should cover the costs of the transfer of equity. Is this normally shared or is one of us obliged to cover the legal bill?
- I am searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Halifax. I really don't want to get ripped off but with various conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
- Me and a friend got a joint mortgage with Halifax on a apartment a couple of years ago. I am now thinking of purchasing a apartment on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Would there be any potential concerns with Halifax with him being solely liable for the total mortgage as opposed to only half of it?
- Have recently separated from my wife of 18 years. I'm now back with my mum and dad and she wants to stay in the flat and buy me out. What portion 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 ensure that I'm getting what I am entitled to
- In 2009 I purchased a apartment without my partner's name on the ownership paperwork. My lawyer said it is due to the fact that she was not in the mortgage with Halifax. Is it possible for me to add her name on the title?
- I am thinking of refinancing my flat in Littleborough
does my lawyer have to be on the Halifax Solicitor panel. The conveyancing also involves a transfer of equity.
Questions that your conveyancing solicitor is likely to ask about your Halifax Transfer of Equity
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Is the transfer of equity subject to a court order? If yes please supply a copy
Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please list all persons who occupy the property, their respective ages and relationships to you.
General Advice to read in supporting the above Halifax 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 Halifax conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in 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 breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
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 lawyer 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.
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.