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Hampden transfer of equity: q and a’s

  • I am transferring my equity in flat in Warwick to my co-owners fiance, they are reapplying to Hampden. We are debating as to who must pay the legal bill for the transfer of equity. Is this usually split or is one of us obliged to cover the fees for?
  • I am trying to find a conveyancer to handle my transfer of equity. Hampden are dealing with the remortgage. I considered asking my financial adviser. I understand he may receive a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
  • What are my options where I am not happy with the lawyer who conducted my transfer of equity transaction?
  • I currently have a joint Hampden mortgage with my brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is about 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Hampden?
  • My decree absolute is through as is the consent order. Now I have to sort out the transfer of equity at the land registry and the Hampden home loan. I have contacted Hampden for the transfer of equity application. What are my next steps?
  • I already have a mortgage with Hampden and am keeping my current mortgaging but wish to have it in my name only so my ex won't be on it any longer. How long can it take for the forms to be processed?

Sample of questions in a lawyer form relating to Hampden Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

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

Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify the amount?

Please provide the details of anyone to be added to the property title?

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?

Please provide a copy of your National Insurance Number?

General Advice to read in in addition to the above Hampden 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 Hampden conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 violation 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 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 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Hampden.

Preparing the Transfer of Equity with a Hampden 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 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 contained within 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 Hampden transfer of equity