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Halifax transfer of equity example support desk enquires

  • I already have a home loan with Halifax and am retaining my existing mortgaging but wish to have have the equity transferred to my name alone so my former partner will come off the title. How long can it take for the forms to be processed?
  • I purchased a property with a friend six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Halifax mortgage. There is a significant difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Halifax?
  • What if my application doesn't meet Halifax lending criteria for a transfer of equity?
  • My financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with Halifax - Surely it’s advisable to just use them?
  • I own a flat in Witham , with a Halifax loan with my former partner. He and his fiance are going to buy me out. We had consent from Halifax to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Halifax (apparently). In order to save fees can I do the Land Registry change?
  • Am I best advised cancel the direct debit for my mortgage with Halifax as soon as a date for my remortgage and transfer of equity has been agreed?

Questions that your conveyancer could ask regarding your Halifax Transfer of Equity

Please give the details of those who jointly own the premises with you?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?

Please provide a copy of your National Insurance Number?

Has consent been obtained from Halifax to the proposed transfer of equity?

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.

Information to consider in supplemental the above Halifax transfer of equity Advice :

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 Halifax conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in 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 conveyancer 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 valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Halifax.

Preparing the Transfer of Equity with a Halifax 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 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 lawyer 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 does not constitute 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