Questions and answers: Handelsbanken transfer of equity

• Handelsbanken yesterday agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Handelsbanken?
• My financial adviser has suggested using their conveyancer for our Transfer of Equity plus remortgage with Handelsbanken - Surely it’s better to just instruct them?
• My partner and I jointly own a property in Rye . Mortgage is with Handelsbanken. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be simple?
• Is it sensible to cancel my mortgage payments with Handelsbanken once a date for my remortgage and transfer of equity has been set?
• My wife and myself jointly own a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name to reduce our tax on the letting income. Assuming Handelsbanken are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• I got divorced four years ago. Foolishly I never dealt with the transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Handelsbanken is willing to transfer the full equity in my name (financial checks done). Does my ex need a conveyancer?

Information that may be required from your conveyancer could ask in relation to your Handelsbanken Transfer of Equity

Important warnings to consider in further to the above Handelsbanken transfer of equity Info :

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 Handelsbanken conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 Handelsbanken 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 Handelsbanken 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 varies based 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 Handelsbanken 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 Handelsbanken 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.

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.