Handelsbanken transfer of equity: q and a’s
- My mum died last May leaving a unencumbered house to me and my brother 50:50. Having continues to reside at the house, there was a clause in her will specifying that the propertycould not be sold for 2 years after her death so he could reside there for a while. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
- Me and my partner jointly own a flat in Miles Platting
. Home loan is with Handelsbanken. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
- My brother and I got a joint mortgage with Handelsbanken on a property in 2013. I am now thinking of buying a house by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any concerns with Handelsbanken with him being on the hook for the total loan rather than only half of it?
- I am in the process of removing a name from a joint mortgage and the Handelsbanken need me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Miles Platting
conveyancing solicitor to deal with the transfer of equity? They need to be on the Handelsbanken conveyancing panel.
- What if my application doesn't meet Handelsbanken lending criteria for a transfer of equity?
- My wife and I jointly own a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If Handelsbanken are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- At what stage do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is happening at the same time as a refinancing via Handelsbanken?
Questions that your conveyancer is likely to ask about your Handelsbanken Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Can you give the details of anyone who jointly owns the premises with you?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read in supplemental the above Handelsbanken 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 Handelsbanken conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 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 is dependent 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 conveyancing solicitor 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.
Content on 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.