Frequently asked questions relating to Hampden transfer of equity
- My father died seven months ago leaving a mortgage-free semi to me and my step brother in equal shared. He has always lived in the property, there was a provision in her will specifying that the housecould not be sold for 24 months following her death so he could continue to live there for a prescribed period. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to acquire my equity?
- Having been 3 years apart I have decided to relinquish up my interest in the former home to my husband who is refinancing with Hampden. Could this transfer of equity be completed in less than four weeks?
- At what stage do I cover the costs of stamp duty payable for the transfer of equity in my property in my sole name which is happening simultaneously with a switching mortgage via Hampden?
- My wife and I equally own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. Assuming Hampden are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Is there such a thing a transfer of equity stamp duty calculator?
- My Hampden home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Hampden have consented to the transfer of equity to me solely. Will Hampden get in touch with my company to confirm my salary?
- I got divorced four years ago. Foolishly I never dealt with the change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Hampden is willing to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?
Sample of information requested in a conveyancing solicitor form relating to Hampden Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Have you approached Hampden to seek consent to the Transfer of Equity
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Is it the case that one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Information to consider in conjunction with the above Hampden transfer of equity Advice :
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
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 conditions are not strictly observed you may be in breach of 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 conveyancing solicitor 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 valuation 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 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 conveyancer 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.