Top seven questions relating to HSBC transfer of equity
- I understand we would need at least AP1 and TR1. Is this true?
- I purchased a house with my brother six years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the HSBC mortgage. There is a 40k difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- I got my Decree Absolute two years ago. For some reason I never dealt with the transfer 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. HSBC is content to transfer the full equity in my name (financial checks done). Does she need any legal representation?
- How and when do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is happening at the same time as a refinancing with HSBC?
- I am are looking to find a trustworthy conveyancing solicitor to help me sell in a transfer of equity and remortgage with HSBC. I I am fearful of appointing the wrong one but with lots of conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to appoint?
- I am in the process of removing a name from a joint mortgage and the HSBC require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Dunnington
conveyancer to deal with the transfer of equity? They need to be on the HSBC conveyancing panel.
- I plan to refinance my flat in Ampthill switching from Birmingham Midshires to HSBC. The flat is jointly owned but I would like it to be in my sole name once I transfer. My husband has agreed to this and is happy to transfer equity but neither of us want to incur lawyer fees.
Questions that your lawyer is likely to ask about your HSBC Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Where 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” Form.
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Important warnings to consider in supporting the above HSBC transfer of equity Info :
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 HSBC conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger 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 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with HSBC your property may be repossessed.
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 conveyancer 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.