Hodge Equity Release transfer of equity: q and a’s

• How much the typical solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Hodge Equity Release - and have been quoted £350 plus VAT by Hodge Equity Release's approved conveyancer, Have I been over quoted?
• My Hodge Equity Release home loan we jointly entered into with ex, who has agreed to come off the deeds and put the house in my name alone. Hodge Equity Release will permit the transfer of equity to me solely. Will Hodge Equity Release get in touch with my company to confirm my salary?
• Having been 4 years separated I have made the decision to relinquish up my interest in our apartment to my husband who is re-mortgaging with Hodge Equity Release. Could this transfer of equity be completed within one month?
• I got my Decree Absolute three years ago. For some reason I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Hodge Equity Release is willing to transfer the property and loan in my name (financial checks done). Does my ex need any legal representation?
• I am transferring my equity in property in Hendon to my co-owners fiance, they are sticking with Hodge Equity Release as the the existing lender. We are haggling as to who must pay the legal bill for the transfer of equity. Is this normally split or is one of us liable for the fees for?
• My brother and I got a joint mortgage with Hodge Equity Release on a flat in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Is there likely to be any issue with Hodge Equity Release with him being responsible for the total mortgage as opposed to only part of it?
• Have recently separated from my ex of twenty years. I'm now back with my mum and dad and she wants to remain in the apartment and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the Hodge Equity Release home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal

Information that may be required from your lawyer may ask about your Hodge Equity Release Transfer of Equity

Information to consider in supporting the above Hodge Equity Release transfer of equity Questions and Answers :

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 Hodge Equity Release conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 lawyer will check with Hodge Equity Release 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 Hodge Equity Release 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 conveyancing.

Preparing the Transfer of Equity with a Hodge Equity Release Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Hodge Equity Release 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.