Examples of recent questions relating to Hodge Equity Release transfer of equity
- I currently have a joint Hodge Equity Release mortgage with my brother and am looking into the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is in the region 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty due?
- I am hoping to remortgage my home in Rye
changing from Natwest to Hodge Equity Release. The maisonette is currently in joint names but I would like it to be in my sole name as and when I remortgage. My wife has agreed to this and is happy to sign a form but neither of us want to incur conveyancing solicitor charges.
- What if my application doesn't meet Hodge Equity Release lending criteria for a transfer of equity?
- My wife and I have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to reduce our tax on the letting income. Assuming Hodge Equity Release are fine with this the legal fees are not high. What are the implications when we sell? Would my GGT relief be lost.
- How do I go about adding or subtracting names (transfer of equity) to or from my Hodge Equity Release mortgage account?
- I am trying to find a conveyancing solicitor to deal with my transfer of equity. Hodge Equity Release are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he may receive a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- Law week I separated from my wife of thirty years. I'm now back with my mum and dad and she wants to stay in the property and buy me out. What percentage do I get. Is it 50% of the equity after paying off the mortgage with Hodge Equity Release? I assume proper valuations are required but I would like ensure that I'm getting the best deal
Information that may be required from your conveyancer may ask about your Hodge Equity Release Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Where you are adding someone 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.
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Have you approached Hodge Equity Release to seek consent to the Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read 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, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 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 valuation 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 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.
Content 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.