Questions and answers: Hodge Equity Release transfer of equity

• What are the average legal charges are for a transfer of equity? I need to transfer equity and refinance - moving over to Hodge Equity Release - and have been quoted £250 including VAT by Hodge Equity Release's approved lawyer, Have I been over quoted?
• I currently have a joint Hodge Equity Release mortgage with my brother and am investigating the option of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is approx 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax involved?
• I got divorced in 2010. 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 needed. Hodge Equity Release is content to transfer the property and loan in my name (affordability checks done). Does my ex need a lawyer?
• I am disposing of my share of a property in Warwick to the other co-owners husband, they are sticking with Hodge Equity Release as the the existing lender. We are debating as to who must cover the costs of the transfer of equity. Should this be split or is one party liable for the costs of?
• I am planning on removing a name from a joint mortgage and the Hodge Equity Release need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Wakefield conveyancer to deal with the transfer of equity? They need to be on the Hodge Equity Release conveyancing panel.
• Is it sensible to stop the direct debit for my mortgage with Hodge Equity Release as soon as a date for my remortgage and transfer of equity has been set?
• Can you tell me how to have a person removed from the title documents to a property if the mortgage is with Hodge Equity Release

Questions that your lawyer is likely to ask about your Hodge Equity Release Transfer of Equity

General Advice to read in supporting the above Hodge Equity Release 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 Hodge Equity Release 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 have a license to do so from the landlord. If such restrictions are not strictly observed 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 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 lawyer will check with Hodge Equity Release 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 Hodge Equity Release 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Hodge Equity Release 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 Hodge Equity Release 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.