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Questions and answers: Hinckley and Rugby transfer of equity

  • I own a house in Timperley , with a Hinckley and Rugby mortgage with my ex partner. He and his fiance are going to acquire my share. We had the go ahead from Hinckley and Rugby to substitute my name with hers. The transfer of equity has to be done by a lawyer for Hinckley and Rugby (supposedly). Can we deal with the Land Registry formalities?
  • What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Hinckley and Rugby - and have been quoted £350 plus VAT by Hinckley and Rugby's appointed conveyancer, Is this is a good price or not?
  • My Hinckley and Rugby home loan is in joint names with ex, who has agreed to come off the deeds and let me have the property. Hinckley and Rugby will permit the transfer of equity to my individual name. Will Hinckley and Rugby write my employer to check my salary?
  • I bought a property with my cousin five.seven years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Hinckley and Rugby mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity at the land registry and the Hinckley and Rugby home loan. I have contacted Hinckley and Rugby for the transfer of equity forms. What happens next?
  • I am searching for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Hinckley and Rugby. I want to avoid being ripped off and there's plenty conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
  • My fiance and I jointly own a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on the letting income. Assuming Hinckley and Rugby are content with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.

Questions that your conveyancing solicitor could ask about your Hinckley and Rugby Transfer of Equity

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

Please clarify if you are making any payment for the Transfer of Equity and to whom and notify us any such sums?

Is the transfer of equity subject to a court order? If yes please supply a copy

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Is it the case that one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Has consent been obtained from Hinckley and Rugby to the proposed transfer of equity?

Important warnings to consider in supplemental the above Hinckley and Rugby transfer of equity information :

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 premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of 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 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 market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Hinckley and Rugby.

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 conveyancer 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.


Frequently asked questions relating to Hinckley and Rugby transfer of equity