Sample questions relating to Hodge transfer of equity
- My mother died last March leaving a mortgage-free bungalow to me and my brother in equal shared. He has always lived in the house, there was a condition in the will specifying that the premisescould not be sold for 24 months after her passing so he could continue to live there for a while. He now says he would like to remain in the premises 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 usual way to purchase my equity?
- I co-own a house in Dunnington
, with a Hodge loan with my former husband. Him and his new partner are going to acquire my share. We had consent from Hodge to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Hodge (supposedly). Is it possible for us to deal with the Land Registry formalities?
- I am transferring my share of a apartment in Hendon to my co-owners fiance, they are reapplying to Hodge. We are debating as to who should pay the fees for the transfer of equity. Is this normally split or is one party liable for the legal bill?
- My divorce has gone through as is the consent order. Now I must address the transfer of equity on title deeds and the Hodge home loan. I have contacted Hodge for the transfer of equity application. What happens next?
- I already have a mortgage with Hodge and am keeping my existing mortgaging but wish to have it in my name alone so my former wife will come off the mortgage. How long does the whole transfer of equity process take?
- I got divorced in 2010. For some reason I never dealt with the change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Hodge is content to transfer the property and loan in my name (affordability checks done). Does my ex need any legal representation?
- My former husband are looking to get a conveyancer in place for a remortgage with Hodge. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over England and Wales. Do we need to appoint a lawyer local to us?
Information that may be required from your lawyer is likely to ask in relation to your Hodge Transfer of Equity
If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide the details of anyone to be added to the property title?
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?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in conjunction with the above Hodge transfer of equity Questions and Answers :
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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed 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 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 valuation 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.
Preparing the Transfer of Equity with a Hodge 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 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 lawyer 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.