HSBC transfer of equity example support desk enquires
- How much the typical solicitors costs are for a transfer of equity? I'm in the process of remortgaging - new loan with HSBC - and have been quoted £250 plus VAT by HSBC's appointed conveyancing solicitor, Have I been over quoted?
- As things stand I have a joint HSBC mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 250k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty due?
- Is it sensible to cancel my mortgage payments with HSBC once a date for my remortgage and transfer of equity has been set?
- Is it possible to transfer the equity held in my property with my HSBC mortgage?
- I am selling my share of a apartment in Warwick to the other co-owners fiance, they are sticking with HSBC being the the existing mortgage company. We are debating as to who must cover the charges for the transfer of equity. Is this usually shared or is one party liable for the fees for?
- My ex are planning to get a conveyancer in place for a remortgage with HSBC. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over UK. Do we need to instruct a conveyancer local to us?
- Been reviewing online blogs that solicitors are more expensive than licensed conveyancers for 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
Information that may be required from your conveyancing solicitor is likely to ask regarding your HSBC Transfer of Equity
Please provide the details of anyone to be extracted from the property title?
Please let us know if you are making any payment for the Transfer of Equity and to whom and notify us any such sums?
Please provide the details of anyone to be added to the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the details of those who jointly own the property with you?
Have you approached HSBC to seek consent to the Transfer of Equity
General Advice to read in supplemental 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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of 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 lawyer 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 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 HSBC.
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 conveyancer 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 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.