Recently asked questions relating to Halifax transfer of equity
- Law month I split up with my wife of twenty years. I'm now back with my parents again and she wishes to remain in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with Halifax? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being walked over
- My ex are planning to get a lawyer lined up for a refinance with Halifax. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. Is it important to have a conveyancing solicitor local to us?
- I co-own a house in Winchelsea
, with a Halifax loan with my ex partner. Him and his new partner 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 done by a conveyancing solicitor for Halifax (supposedly). Is it possible for us to do the Land Registry formalities?
- My decree absolute is through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Halifax mortgage. I have called Halifax for the transfer of equity application. What do I do now?
- I got my Decree Absolute three years ago. For some reason I never got around to transfer ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Halifax is happy to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
- I already have a mortgage with Halifax and am keeping my existing mortgaging but wish to have it in my name only so my ex will no longer be on the deeds. How long can it take for the paperwork to be processed?
- Is it sensible to stop my mortgage payments with Halifax once a date for my remortgage and transfer of equity has been set?
Sample of questions in a conveyancer questionnaire relating to Halifax Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Has consent been obtained from Halifax to the proposed transfer of equity?
If 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.
Is the transfer of equity subject to a court order? If yes please supply a copy
Information to consider in further to the above Halifax transfer of equity Info :
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 properties
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 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.
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 varies based on the valuation of the property at the conclusion 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 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 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.