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Hodge Equity Release

Top seven questions relating to Hodge Equity Release transfer of equity

  • I recently bought a flat without my wife's name on the deeds. My conveyancer said it is due to the fact that she was not in the mortgage with Hodge Equity Release. Is it possible for me to put her name on the title?
  • What if my application doesn't meet Hodge Equity Release lending criteria for a transfer of equity?
  • I intend to refinance my home in Blaenavon moving from Santander to Hodge Equity Release. The home is jointly owned but wish for it to be in my name only when I switch. My former partner has verbally consented to this and is happy to transfer equity but neither of us want to incur conveyancer charges.
  • Can I apply to borrow more money from Hodge Equity Release as part of a Transfer of Equity?
  • As things stand I have a joint Hodge Equity Release mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my fiance. The outstanding mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
  • What do I do if I am not happy with the lawyer who did our transfer of equity conveyancing?
  • At what stage do I cover the costs of the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my name alone which is happening simultaneously with a refinancing with Hodge Equity Release?

Sample of questions in a conveyancer form relating to Hodge Equity Release Transfer of Equity

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

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)

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

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please let us know where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

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

General Advice to read in conjunction with the above Hodge Equity Release 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 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, 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.

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 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 market value of the property at the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Hodge Equity Release.

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 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.


Frequently asked questions relating to Hodge Equity Release transfer of equity