Examples of recent questions relating to HSBC transfer of equity
- At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is taking place at the same time as a remortgage with HSBC?
- I already have a home loan with HSBC and am retaining my current mortgaging but applying to have have the equity transferred to my name alone so my former wife won't be on it any longer. How long can it take for the application to be processed?
- My friend and I got a joint mortgage with HSBC on a flat in 2013. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a price where do we go? Would there be any potential concerns with HSBC with him being responsible for the total mortgage rather than only part of it?
- My HSBC mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and let me have the property. HSBC have consented to the transfer of equity to my individual name. Do HSBC write my company to check my salary?
- My divorce is through as is the consent order. Now I have to deal with the transfer of equity for the property and the HSBC mortgage. I have contacted HSBC for the transfer of equity application. What do I do now?
- Online research suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and simultaneously switching mortgage with HSBC
- My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on the letting income. Assuming HSBC are happy with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
Examples of information requested in a conveyancer questionnaire relating to HSBC Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
Have you approached HSBC to obtain consent to the Transfer of Equity
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Caveats to be read in further to the above HSBC transfer of equity information :
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
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer 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 conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with HSBC.
Preparing the Transfer of Equity with a HSBC Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.
Content 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.