Sample questions relating to HSBC transfer of equity

• My mum passed away half a year ago leaving a unencumbered semi to me and my brother 50:50. He has always lived in the property, there was a clause in the will saying the premisescould not be sold for 24 months following her death so he could continue to live there for a while. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to acquire my equity?
• I am in the market for a dependable conveyancing lawyer to assist in a transfer of equity and remortgage with HSBC. I I am fearful of being overcharged but with so many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the HSBC home loan. I have asked HSBC for the transfer of equity forms. What are my next steps?
• I am answering a HSBC transfer of equity application and have arrived at the part that asks about debts etc. I do some debts that I have been clearing for a number of years, in fact they no longer remain my credit records. Am I obliged to declare these?
• My brother and I got a joint mortgage with HSBC on a apartment a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Is there likely to be any problem with HSBC with him being on the hook for the total loan rather than only part of it?
• Given that we have been 2 a couple of years separated I have decided to give up my share of the flat to my husband who is refinancing with HSBC. Can a transfer of equity be completed within 28 days?
• Me and my partner jointly own a house in Heathfield . Mortgage is with HSBC. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be straightforward?

Examples of information requested in a conveyancing solicitor questionnaire concerning a HSBC Transfer of Equity

General Advice to read in conjunction with the above HSBC transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be leasehold, provisions in 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 trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 market value of the property at the time of completion of the transfer of equity conveyancing.

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.

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.