Top seven questions relating to Handelsbanken transfer of equity

• My mum died last January leaving a loan-free house to me and my step brother equally. He has always lived in the premises, there was a condition in her will saying the housecould not be sold for three years after her passing so he could reside there for a prescribed period. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to acquire my half from me?
• Our financial adviser has recommended their lawyer for my Transfer of Equity plus remortgage with Handelsbanken - won’t it be advisable to just use them?
• Am I best advised stop my mortgage payments with Handelsbanken once a date for my remortgage and transfer of equity has been agreed?
• After three years estranged I have made the decision to transfer my share of our property to my husband who is refinancing with Handelsbanken. Can a transfer of equity be completed inside four weeks?
• Me and a friend got a joint mortgage with Handelsbanken on a apartment about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential issue with Handelsbanken with him being on the hook for the total mortgage rather than only part of it?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Handelsbanken?
• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the Handelsbanken home loan. I have asked Handelsbanken for the transfer of equity forms. What happens next?

Sample of questions in a conveyancer form relating to Handelsbanken Transfer of Equity

Information to consider in supplemental 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, 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 restrictions are not strictly observed 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 finalisation 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 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 conveyancing solicitor 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 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.