Common questions relating to Hodge Equity Release transfer of equity
- I am in the process of removing a name from a joint mortgage and the Hodge Equity Release need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancing solicitor to deal with the transfer of equity? They need to be on the Hodge Equity Release conveyancing panel.
- My dad died last May leaving a loan-free semi to me and my half brother equally. Having continues to reside at the premises, there was a provision in her will specifying that the propertycould not be sold for 2 years following her passing so he could remain there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to acquire my equity?
- I am disposing of my equity in flat in Birmingham to my co-owners fiance, they are reapplying to Hodge Equity Release. We are debating as to who should cover the fees for the transfer of equity. Should this be split or is one party liable for the charges for?
- Am I best advised stop my mortgage payments with Hodge Equity Release as soon as a date for my remortgage and transfer of equity has been agreed?
- Me and a friend got a joint mortgage with Hodge Equity Release on a property about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential concerns with Hodge Equity Release with him being responsible for the total loan rather than only half of it?
- Is there such a thing a transfer of equity stamp duty calculator?
- I am trying to find a conveyancing solicitor to deal with my transfer of equity. Hodge Equity Release are dealing with the remortgage. I considered asking my financial adviser. I understand he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
Questions that your conveyancing solicitor is likely to ask about your Hodge Equity Release Transfer of Equity
Have you approached Hodge Equity Release to seek consent to the Transfer of Equity
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Would you like us to prepare Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
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” Form.
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Important warnings to consider in in addition to the above Hodge Equity Release transfer of equity Info :
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
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 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 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 the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Hodge Equity Release your property may be repossessed.
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 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 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.