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Hodge Equity Release transfer of equity example support desk enquires

  • My dad died early last year leaving a unencumbered semi to me and my half brother in equal shared. He has always lived in the premises, there was a condition in the will specifying that the housecould not be sold for 24 months following her death so he could continue to live there for a specified time frame. He now wishes to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
  • Will I incur any charges for a Transfer of Equity where the existing home loan is with Hodge Equity Release?
  • My financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Hodge Equity Release - Is it not simpler easier to just use them?
  • What is the process for adding or removing names (transfer of equity) to or from my Hodge Equity Release mortgage account?
  • I currently have a joint Hodge Equity Release mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my fiance. The remaining mortgage is about 300k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
  • In 2011 I bought a flat without my partner's name on the ownership paperwork. My conveyancer said it is due to the fact that she is not in the mortgage with Hodge Equity Release. I'm wondering is there any way that I can add her name on the deeds?
  • What can I do where I am not happy with the conveyancing solicitor who conducted our transfer of equity transaction?

Questions that your lawyer may ask regarding your Hodge Equity Release Transfer of Equity

Please provide the details of anyone to be removed from the title deeds?

Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Would you like us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?

Have you approached Hodge Equity Release to obtain consent to the Transfer of Equity

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Can you provide the details of anyone who jointly owns the premises with you?

Important warnings to consider in supplemental 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 titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation 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 conveyancer 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.
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 conveyancing solicitor 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.


Frequently asked questions relating to Hodge Equity Release transfer of equity