LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Hinckley and Rugby

Recently asked questions relating to Hinckley and Rugby transfer of equity

  • What if my application doesn't meet Hinckley and Rugby lending criteria for a transfer of equity?
  • I am transferring my equity in apartment in Birmingham to my co-owners husband, they are sticking with Hinckley and Rugby as the the existing lender. We are in heated discussion as to who should pay the charges for the transfer of equity. Should this be shared or is one party liable for the charges for?
  • My former husband are looking to get a lawyer in place for a new mortgage with Hinckley and Rugby. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over England and Wales. How necessary is it to have a conveyancer local to us?
  • Hinckley and Rugby have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds in addition?
  • I intend to remortgage my home in Romsey changing from Bank of Scotland to Hinckley and Rugby. The apartment is jointly owned but propose for it to be in my sole name as and when I switch. My wife is OK with this and is happy to sign a form but neither of us want to incur conveyancer fees.
  • Me and a friend got a joint mortgage with Hinckley and Rugby on a flat in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any problem with Hinckley and Rugby with him being on the hook for the total mortgage as opposed to only half of it?
  • How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my property in my name alone which is happening at the same time as a switching mortgage via Hinckley and Rugby?

Information that may be required from your lawyer could ask about your Hinckley and Rugby Transfer of Equity

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Have you approached Hinckley and Rugby to seek consent to the Transfer of Equity

Please give the details of anyone to be added to the property title?

Who will be responsible for the costs of the Transfer of Equity?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Important warnings to consider in conjunction with 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 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 obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of 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 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 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 lawyer 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 conveyancing solicitor 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 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.


Frequently asked questions relating to Hinckley and Rugby transfer of equity