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

• I currently have a joint Hodge Equity Release mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is in the region 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
• What can I do where I am unhappy with the conveyancer who did my transfer of equity transaction?
• I am planning on removing a name from a joint mortgage and the Hodge Equity Release require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting lawyer to deal with the transfer of equity? They need to be on the Hodge Equity Release conveyancing panel.
• I purchased a house with my cousin in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is removed the Hodge Equity Release mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• Law week I separated from my ex of thirty years. I'm now living with my mum and dad and she wishes to stay in the flat and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Hodge Equity Release? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being walked over
• Will I incur any charges for a Transfer of Equity where the current home loan is with Hodge Equity Release?
• I already have a mortgage with Hodge Equity Release and am maintaining my existing mortgaging but wish to have have the equity transferred to my name only so my ex won't be on it any longer. How long does the whole transfer of equity process take?

Questions that your conveyancer may ask about your Hodge Equity Release Transfer of Equity

Caveats to be read in in addition to the above Hodge Equity Release 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 Hodge Equity Release conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is 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 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 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 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 valuation of the property at the conclusion 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 conveyancer 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 conveyancer 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.