Recently asked questions relating to Handelsbanken transfer of equity

• Me and my partner jointly own a house in Friern Barnet . Mortgage is with Handelsbanken. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?
• I co-own a property in Sedgefield , with a Handelsbanken loan with my former partner. He and his new partner are going to buy me out. We had the go ahead from Handelsbanken to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Handelsbanken (supposedly). Is it possible for us to deal with the Land Registry formalities?
• What are the average solicitors costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Handelsbanken - and have been quoted £250 excluding VAT by Handelsbanken's appointed conveyancer, Have I been over quoted?
• How and when do I pay stamp duty due for the transfer of equity in my property in my name alone which is happening simultaneously with a remortgage with Handelsbanken?
• I am completing a Handelsbanken transfer of equity request and have arrived at the section regarding defaults etc. I do some debts that I have been paying off since 2008, I understand that they no longer remain my credit rating. Do I need to set these out?
• Is it sensible to cancel the direct debit for my mortgage with Handelsbanken once a date for my remortgage and transfer of equity has been agreed?
• My financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Handelsbanken - Surely it’s easier to just instruct them?

Questions that your conveyancer is likely to ask in relation to your Handelsbanken Transfer of Equity

General Advice to read in supporting the above Handelsbanken 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 Handelsbanken conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 valuation 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 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.

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.