LenderPanel.com

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

Common questions relating to Halifax transfer of equity

  • As things stand I have a joint Halifax mortgage with my brother and am investigating the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
  • Is it possible to transfer the equity held in my property with my Halifax mortgage?
  • Will I incur any fees for a Transfer of Equity where the current mortgage is with Halifax?
  • My mortgage broker has suggested using their lawyer for the Transfer of Equity plus remortgage with Halifax - Is it not simpler advisable to just use them?
  • Can I apply to borrow more money from Halifax as part of a Transfer of Equity?
  • My ex are looking to get a conveyancer lined up for a refinance with Halifax. Transfer of Equity conveyancing is also necessaryI have used the different comparison based services and the results are from all over UK. Do we need to appoint a conveyancer local to us?
  • I am planning on removing a name from a joint mortgage and the Halifax require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Dunnington conveyancing solicitor to deal with the transfer of equity? They need to be on the Halifax conveyancing panel.

Information that may be required from your lawyer could ask regarding your Halifax Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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

Where you 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?

Can you provide the details of anyone who jointly owns the property with you?

Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please provide the details of anyone to be extracted from the property title?

Important warnings to consider in supplemental the above Halifax transfer of equity Questions and Answers :

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 require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 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 is dependent on the market value 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 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 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