Hinckley and Rugby transfer of equity: q and a’s
- My former wife are planning to get a conveyancer lined up for a new mortgage with Hinckley and Rugby. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over UK. Is it important to have a conveyancing solicitor local to us?
- Hinckley and Rugby yesterday agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
- Online research suggests that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time switching mortgage with Hinckley and Rugby
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and refinance - moving over to Hinckley and Rugby - and have been quoted £350 excluding VAT by Hinckley and Rugby's appointed conveyancer, Have I been over quoted?
- I currently have a joint Hinckley and Rugby mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
- Have recently separated from my partner of 18 years. I'm now back with my parents again and she wants to stay in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the Hinckley and Rugby home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
- Is it possible to transfer the equity held in my property with my Hinckley and Rugby mortgage?
Questions that your conveyancer could ask about your Hinckley and Rugby Transfer of Equity
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Please provide the details of those who jointly own the property with you?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide a copy of your National Insurance Number?
Caveats to be read in supporting the above Hinckley and Rugby transfer of equity Advice :
Tax and Legal
There are numerous potential 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 require that you obtain the consent of the freeholder. 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.
If the transfer of equity is made pursuant to 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 varies based on the valuation of the property at the time of completion 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 provided on 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.