Common questions relating to Handelsbanken transfer of equity
- I got my Decree Absolute in 2011. For some reason I never dealt with the change the ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Handelsbanken is willing to transfer the property and loan in my name (affordability checks done). Does my ex need a lawyer?
- Am I best advised cancel the direct debit for my mortgage with Handelsbanken once a date for my remortgage and transfer of equity has been agreed?
- Law month I split up with my partner of twenty years. I'm now back with my parents again and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the Handelsbanken home loan? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- I am in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Handelsbanken. I want to avoid being ripped off but with so many conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
- I am transferring my equity in flat in Hendon to the other co-owners husband, they are reapplying to Handelsbanken. We are in heated discussion as to who should pay the charges for the transfer of equity. Should this be shared or is one of us liable for the charges for?
- After 3 years separated I have opted to give up my share of the apartment to my husband who is refinancing with Handelsbanken. Can a transfer of equity be completed inside one month?
- Our financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with Handelsbanken - Surely it’s better to just use them?
Sample of questions in a conveyancing solicitor questionnaire concerning a Handelsbanken Transfer of Equity
Please provide the details of anyone to be added to the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Who will be responsible for the costs of the 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)?
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Have you approached Handelsbanken to obtain consent to the Transfer of Equity
Important warnings to consider in supporting the above Handelsbanken transfer of equity information :
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 Handelsbanken conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. 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 conveyancing solicitor will check with Handelsbanken 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 Handelsbanken 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 market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Handelsbanken.
Preparing the Transfer of Equity with a Handelsbanken 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 Handelsbanken 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 contained within 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.