Recently asked questions relating to Habito transfer of equity

• I got divorced three years ago. For some reason I never dealt with the transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Habito is happy to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
• Last year purchased a apartment without my fiance’s name on the deeds. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Habito. Is it possible for me to put her name on the title?
• My partner and I co-own a property in Timperley . Mortgage is with Habito. I want to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be straightforward?
• I am selling my equity in flat in Birmingham to the other co-owners fiance, they are reapplying to Habito. We are debating as to who must cover the legal bill for the transfer of equity. Is this usually shared or is one party obliged to cover the fees for?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• I bought a flat with a friend five.seven years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Habito mortgage. There is a meaningful difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
• I am searching for a quality conveyancing solicitor to assist in a transfer of equity and refinance with Habito. I want to avoid being ripped off and there's various conveyancing firms who do transfer of equity conveyancing to pick from...how do I know which one to select?

Examples of information requested in a conveyancer form concerning a Habito Transfer of Equity

Caveats to be read in supporting the above Habito 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 Habito conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed 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 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 Habito 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 Habito 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 conveyancing.

Preparing the Transfer of Equity with a Habito 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 Habito 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.