Top seven questions relating to Hampden transfer of equity
- My mum died seven months ago leaving a mortgage-free semi to me and my brother 50:50. Having continues to reside at the premises, there was a condition in the will saying the housecould not be sold for 24 months after her death so he could reside there for a while. He now wants to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my equity?
- Have recently split up with my wife of thirty years. I'm now back with my mum and dad and she wishes to remain in the property and pay me off. What portion am I entitled to. Is it half of the equity after paying off the mortgage with Hampden? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with Hampden?
- What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Hampden - and have been quoted £350 including VAT by Hampden's appointed conveyancing solicitor, Is this a reasonable price?
- My ex are looking to get a lawyer lined up for a new mortgage with Hampden. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. How necessary is it to have a conveyancer local to us?
- Two years ago I purchased a apartment without my partner's name on the ownership paperwork. My conveyancer advised it is due to the fact that she is not in the mortgage with Hampden. Is it possible for me to put her name on the title?
- I am looking for a conveyancer to deal with my transfer of equity. Hampden are dealing with the remortgage. I thought of asking my mortgage broker. I understand he may get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
Information that may be required from your lawyer is likely to ask regarding your Hampden Transfer of Equity
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)?
Please provide the details of anyone to be added to the title deeds?
Please provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Have you approached Hampden to seek consent to the Transfer of Equity
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Important warnings to consider in in addition to the above Hampden transfer of equity Info :
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 restrictions are not strictly observed 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 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 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 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 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.
