Frequently asked questions relating to HSBC transfer of equity

• My former husband are looking to get a conveyancer lined up for a refinance with HSBC. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over England and Wales. How necessary is it to instruct a lawyer local to us?
• HSBC have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
• Am I best advised cancel the direct debit for my mortgage with HSBC once a date for my remortgage and transfer of equity has been set?
• My mum passed away seven months ago leaving a loan-free property to me and my brother 50:50. Having continues to reside at the house, there was a provision in her will specifying that the propertycould not be sold for 2 years following her passing so he could continue to live there for a prescribed period. He now wants to remain in the premises beyond the prescribed 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 traditional way to acquire my share?
• Me and a friend got a joint mortgage with HSBC on a apartment a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Is there likely to be any concerns with HSBC with him being solely liable for the total mortgage as opposed to only half of it?
• Can I apply to borrow more money from HSBC as part of a Transfer of Equity?
• How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with HSBC - and have been quoted Three Hundred pounds including VAT by HSBC's appointed conveyancing solicitor, Is this a reasonable price?

Questions that your conveyancer is likely to ask about your HSBC Transfer of Equity

Caveats to be read in in addition to the above HSBC transfer of equity Info :

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 HSBC conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 conveyancing solicitor will check with HSBC 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 HSBC 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 valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a HSBC 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 HSBC 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.