Questions and answers: Hinckley and Rugby transfer of equity

• Hinckley and Rugby have today agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
• My former husband are seeking to get a conveyancing solicitor in place for a remortgage with Hinckley and Rugby. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Do we need to have a lawyer local to us?
• When it comes to transfer of equity conveyancing involving refinance with Hinckley and Rugby should I be invoiced VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• My existing mortgage is with Hinckley and Rugby. Can I transfer equity to someone who is not yet 18 years old?
• I am filling out a Hinckley and Rugby transfer of equity form and have come to the part that asks about defaults etc. There are some debts that I have been paying off for a number of years, I understand that they no longer remain my credit rating. Do I need to disclose these?
• As things stand I have a joint Hinckley and Rugby mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to buy a place with my partner. The remaining mortgage is approx 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
• I am planning on removing a name from a joint mortgage and the Hinckley and Rugby require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Rye conveyancer to deal with the transfer of equity? They need to be on the Hinckley and Rugby conveyancing panel.

Examples of information requested in a conveyancing solicitor questionnaire concerning a Hinckley and Rugby Transfer of Equity

General Advice to read in conjunction with the above Hinckley and Rugby 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 Hinckley and Rugby 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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 cases, 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.

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 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.