Examples of recent questions relating to HSBC transfer of equity
- My dad died seven months ago leaving a unencumbered property to me and my brother in equal shared. Having continues to reside at the premises, there was a provision in her will saying the housecould not be sold for three years after her passing so he could continue to live there for a specified time frame. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to purchase my half from me?
- I am disposing of my equity in property in Warwick to my co-owners fiance, they are sticking with HSBC being the the existing mortgage company. We are debating as to who must pay the costs of the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
- I got divorced in 2010. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. HSBC is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?
- I already have a home loan with HSBC and am keeping my existing mortgaging but applying to have it in my name only so my former wife won't be on it any longer. How long can it take for the application to be processed?
- Been reviewing online forums that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time refinancing with HSBC
- I am filling out a HSBC transfer of equity request and have come to the part concerning defaults etc. There are some debts that I have been clearing since 2007, in fact they no longer remain my credit score. Do I need to set these out?
- My HSBC home loan is in joint names with ex, he has agreed to come off the deeds and put the house in my name alone. HSBC have consented to the transfer of equity to me solely. Do HSBC get in touch with my boss to check my salary?
Information that may be required from your conveyancer is likely to ask about your HSBC Transfer of Equity
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Has one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Has consent been obtained from HSBC to the proposed transfer of equity?
Please provide the details of anyone to be removed from the title deeds?
Information to consider in supporting the above HSBC transfer of equity Advice :
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 properties
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 valuation of the property at finalisation 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 conveyancer 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.
