Recently asked questions relating to Hodge transfer of equity
- I am looking for a conveyancer to handle my transfer of equity. Hodge have been approached for a refinancing. I thought of asking my mortgage broker. I understand he may get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- My wife and I jointly own a buy to let. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to mitigate tax on rental income. If Hodge are happy with this the legal fees are not prohibitive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Hodge yesterday agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
- My mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with Hodge - won’t it be better to just use them?
- I own a house in Timperley
, with a Hodge mortgage with my former partner. 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 (apparently). Is it possible for us to deal with the Land Registry change?
- As things stand I have a joint Hodge mortgage with my step-brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is approx 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- Me and a friend got a joint mortgage with Hodge on a property in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Is there likely to be any issue with Hodge with him being on the hook for the total mortgage as opposed to only part of it?
Information that may be required from your conveyancer could ask regarding your Hodge Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Has consent been obtained from Hodge to the proposed transfer of equity?
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 removed from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in supporting 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 titles
Should the tenure of your property be 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 landlord. If such terms are not adhered to you may be in breach of your covenants under 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
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 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.