Top seven questions relating to Hampden transfer of equity

• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Hampden mortgage account?
• Have recently split up with my partner of 18 years. I'm now back with my parents again and she wishes to stay in the flat and buy me out. What portion do I get. Is it half of the equity after discharging the Hampden home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being walked over
• I am disposing of my share of a apartment in Warwick to the other co-owners fiance, they are reapplying to Hampden. We are in heated discussion as to who must cover the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the fees for?
• My existing home loan is with Hampden. Can I transfer equity to someone less than 18 years old?
• The financial adviser has suggested using their conveyancer for my Transfer of Equity plus remortgage with Hampden - Is it not simpler better to just instruct them?
• Am I best advised cancel my mortgage payments with Hampden as soon as a date for my remortgage and transfer of equity has been set?
• I am remortgaging my apartment in Dunnington does my lawyer have to be on the Hampden Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your lawyer could ask in relation to your Hampden Transfer of Equity

General Advice to read in supplemental the above Hampden 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 Hampden conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, 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 violation of your covenants under the lease. This could trigger 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 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 Hampden 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 Hampden 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 Hampden 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 Hampden 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.

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.