Sample questions relating to Hodge transfer of equity

• At what stage do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is happening simultaneously with a remortgage via Hodge?
• My fiance and I jointly own a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name to reduce our tax on the letting income. If Hodge are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• My Hodge home loan is in joint names with ex, who has agreed to come off the deeds and put the house in my name alone. Hodge have consented to the transfer of equity to my individual name. Will Hodge contact my company to check my salary?
• Having been 4 years separated I have made the decision to give up my share of our former home to my husband who is re-mortgaging with Hodge. Could this transfer of equity be done inside four weeks?
• What are the average legal charges are for a transfer of equity? I need to transfer equity and refinance - moving over to Hodge - and have been quoted Four Hundred pounds plus VAT by Hodge's appointed lawyer, Is this a reasonable price?
• As things stand I have a joint Hodge mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to buy a property with my fiance. The remaining mortgage is approx 200k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
• Am I best advised stop the direct debit for my mortgage with Hodge as soon as a date for my remortgage and transfer of equity has been agreed?

Information that may be required from your conveyancer could ask about your Hodge Transfer of Equity

Caveats to be read in further to the above Hodge 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 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 have a license to do so from the landlord. If such terms are not adhered to 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 as a result of 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 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 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 transaction.

Preparing the Transfer of Equity with a Hodge Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Hodge 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 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.