Recently asked questions relating to Handelsbanken transfer of equity

• Three years ago I purchased a apartment without my fiance’s name on the title. My conveyancing solicitor said it is due to the fact that she is not in the mortgage with Handelsbanken. Is it possible for me to put her name on the deeds?
• What is the process for having someone removed from the deeds to a house where the mortgage is with Handelsbanken
• I understand we would need at least AP1 and TR1. Is this true?
• My Handelsbanken home loan is in joint names with ex, he has agreed to be removed and let me have the property. Handelsbanken will permit the transfer of equity to my individual name. Will Handelsbanken call my company to verify my salary?
• Handelsbanken have just agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house on top?
• Me and a friend got a joint mortgage with Handelsbanken on a apartment in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Is there likely to be any concerns with Handelsbanken with him being on the hook for the total mortgage rather than only part of it?
• I jointly own a apartment in Winchelsea , with a Handelsbanken mortgage with my ex partner. Him and his new partner are going to buy me out. We had approval from Handelsbanken to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Handelsbanken (apparently). In order to save fees can I deal with the Land Registry change?

Questions that your lawyer may ask regarding your Handelsbanken Transfer of Equity

Caveats to be read in supporting the above Handelsbanken transfer of equity information :

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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach 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 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 lawyer 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 conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Handelsbanken Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 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.