Top seven questions relating to Hampden transfer of equity
- I bought a property with a friend six years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Hampden mortgage. There is a significant difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
- Have recently split up with my partner of thirty years. I'm now living with my parents again and she wishes to stay in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after paying off the Hampden home loan? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
- Having been four years separated I have decided to transfer my share of our property to my husband who is re-mortgaging with Hampden. Can a transfer of equity be done in less than 28 days?
- How much the typical legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Hampden - and have been quoted Four Hundred pounds excluding VAT by Hampden's appointed conveyancing solicitor, Is this a reasonable price?
- What if my application doesn't meet Hampden lending criteria for a transfer of equity?
- Me and my former husband and I are are looking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Hampden. I am aware of the risk of getting ripped off and there are lots of conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
- I got my Decree Absolute in 2011. For some reason I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Hampden is happy to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
Information that may be required from your conveyancing solicitor could ask in relation to your Hampden Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
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” Questionnaire.
Please provide the details of anyone to be added to the title deeds?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Information to consider in further 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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
Indemnity Insurance
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 conveyancing.
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 conveyancing solicitor 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 lawyer 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.
