Top seven questions relating to Hinckley and Rugby transfer of equity

• What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Hinckley and Rugby - and have been quoted £250 plus VAT by Hinckley and Rugby's approved conveyancing solicitor, Have I been over quoted?
• My fiance and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name in order reduce our tax on the letting income. If Hinckley and Rugby are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
• My existing home loan is with Hinckley and Rugby. Can I transfer equity to someone who is not yet 18 years old?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Hinckley and Rugby?
• What if my application doesn't meet Hinckley and Rugby lending criteria for a transfer of equity?
• Me and my partner co-own a property in Miles Platting . Mortgage is with Hinckley and Rugby. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
• I purchased a house with a friend in 2008 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Hinckley and Rugby mortgage. There is a significant difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?

Questions that your conveyancing solicitor may ask in relation to your Hinckley and Rugby Transfer of Equity

Caveats to be read in conjunction with the above Hinckley and Rugby 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 Hinckley and Rugby conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation 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 lawyer will check with Hinckley and Rugby 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 Hinckley and Rugby 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Hinckley and Rugby 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 Hinckley and Rugby 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.

Information contained within 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.