Top seven questions relating to Halifax transfer of equity
- Halifax have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house as well?
- Me and my partner co-own a property in Rye
. Home loan is with Halifax. I would like to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be simple?
- My Halifax home loan we jointly entered into with ex, who is agreeable to come off the deeds and let me have the property. Halifax have consented to the transfer of equity to me solely. Do Halifax contact my boss to verify my salary?
- I am in the process of removing a name from a joint mortgage and the Halifax need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Friern Barnet
conveyancer to deal with the transfer of equity? They need to be on the Halifax conveyancing panel.
- How much the typical conveyancing fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Halifax - and have been quoted Four Hundred pounds including VAT by Halifax's approved conveyancer, Is this is a good price or not?
- My ex are looking to get a lawyer lined up for a new mortgage with Halifax. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Is it important to appoint a conveyancer local to us?
- I co-own a house in Ampthill , with a Halifax mortgage with my ex husband. He and his fiance are going to acquire my share. We had the go ahead from Halifax to substitute my name with hers. The transfer of equity has to be completed by a lawyer for Halifax (apparently). Is it possible for us to do the Land Registry change?
Examples of questions in a lawyer questionnaire concerning a Halifax Transfer of Equity
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Important warnings to consider in further to the above Halifax 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 Halifax conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of 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 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 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 conveyancer 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.