Sample questions relating to Hinckley and Rugby transfer of equity
- As things stand I have a joint Hinckley and Rugby mortgage with my step-brother and am investigating the option of him taking on the whole mortgage and extracting myself from it, to enable me to buy a property with my partner. The remaining mortgage is about 250k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax involved?
- I co-own a flat in Ampthill , with a Hinckley and Rugby mortgage with my former husband. Him and his fiance are going to acquire my share. We had approval from Hinckley and Rugby to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Hinckley and Rugby (supposedly). Is it possible for us to deal with the Land Registry change?
- My Hinckley and Rugby mortgage is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Hinckley and Rugby will permit the transfer of equity to me solely. Do Hinckley and Rugby call my employer to confirm my salary?
- My wife and myself have equal shares in a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name to mitigate tax on the letting income. Assuming Hinckley and Rugby are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
- I am disposing of my share of a property in Hendon to the other co-owners fiance, they are sticking with Hinckley and Rugby being the the existing lender. We are haggling as to who must pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the costs of?
- I am looking for a conveyancing solicitor to handle my transfer of equity. Hinckley and Rugby are dealing with the refinancing. I considered asking my mortgage broker. I understand he may get a kickback for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic flawed?
- I am are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Hinckley and Rugby. I want to avoid being ripped off and there's many conveyancing solicitors who do transfer of equity conveyancing to choose from...who's the best?
Sample of questions in a conveyancing solicitor form concerning a Hinckley and Rugby Transfer of Equity
Can you give the details of anyone who jointly owns the premises with you?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Has consent been obtained from Hinckley and Rugby to the proposed transfer of equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please provide a copy of your National Insurance Number?
Important warnings to consider in in addition to the above Hinckley and Rugby transfer of equity Advice :
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 Hinckley and Rugby conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of 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.
If the transfer of equity is made as a result of 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 conveyancing solicitor will check with Hinckley and Rugby 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 Hinckley and Rugby 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.
If you do not keep up the payments on your mortgage with Hinckley and Rugby your property may be repossessed.
Preparing the Transfer of Equity with a Hinckley and Rugby 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 Hinckley and Rugby 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 lawyer 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.