Sample questions relating to Halifax transfer of equity

• I am trying to find a conveyancing solicitor to handle my transfer of equity. Halifax are dealing with the refinancing. I thought of asking my financial adviser. I am lead to believe he may receive a referral fee for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic flawed?
• I currently have a joint Halifax mortgage with my cousin and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
• I am in the market for a trustworthy conveyancing solicitor to help me sell in a transfer of equity and refinance with Halifax. I really don't want to get ripped off and there's various conveyancing firms who do transfer of equity conveyancing to pick from...who's the best?
• Have recently separated from my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after paying off the Halifax home loan? I assume proper valuations are required but I really need ensure that I'm getting I am not being walked over
• Me and my partner co-own a property in Heathfield . Mortgage is with Halifax. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be simple?
• I got my Decree Absolute in 2012. For some reason I never dealt with the transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Halifax is willing to transfer the property and loan in my name (affordability checks done). Does she need a solicitor?
• Can I apply to borrow a further advance from Halifax as part of a Transfer of Equity?

Information that may be required from your conveyancer could ask regarding your Halifax Transfer of Equity

Information to consider in further to the above Halifax transfer of equity Info :

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 Halifax 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 freeholder. If such conditions are not complied with you may be in violation of your covenants under 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 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 Halifax 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 Halifax 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Halifax Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Halifax 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.