Recently asked questions relating to Hampden transfer of equity
- My existing home loan is with Hampden. Can I transfer equity to someone less than 18 years old?
- Is it possible to apply to borrow more money from Hampden as part of a Transfer of Equity?
- My fiance and I jointly own a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to mitigate tax on the letting income. If Hampden are happy with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- Online reading suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously refinancing with Hampden
- My mother died seven months ago leaving a unencumbered house to me and my brother 50:50. Having continues to reside at the house, there was a clause in her will saying the premisescould not be sold for 24 months after her death so he could remain there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I own a apartment in Romsey
, with a Hampden loan with my ex husband. Him and his new partner are going to buy me out. We had approval from Hampden to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Hampden (apparently). Can we deal with the Land Registry formalities?
- Me and a friend got a joint mortgage with Hampden on a house about a year ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential problem with Hampden with him being solely liable for the total mortgage as opposed to only part of it?
Sample of information requested in a conveyancer questionnaire relating to Hampden Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please give the details of anyone to be added to the property title?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Has consent been obtained from Hampden to the proposed transfer of equity?
Information to consider in conjunction with the above Hampden transfer of equity Questions and Answers :
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 Hampden conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 Hampden 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 Hampden 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 transaction.
If you do not keep up the payments on your mortgage with Hampden your property may be repossessed.
Preparing the Transfer of Equity with a Hampden 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 Hampden 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 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.