Common questions relating to Hodge Equity Release transfer of equity

• Me and my partner co-own a property in Timperley . Home loan is with Hodge Equity Release. I wish to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be easy to so?
• My existing home loan is with Hodge Equity Release. Can I transfer equity to someone less than 18 years old?
• I currently have a joint Hodge Equity Release mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to buy a place with my partner. The outstanding mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
• My brother and I got a joint mortgage with Hodge Equity Release on a apartment in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential problem with Hodge Equity Release with him being on the hook for the total loan as opposed to only part of it?
• Law month I separated from my wife of twenty years. I'm now living with my parents again and she wants to stay in the apartment and buy me out. What percentage do I get. Is it half of the equity after paying off the Hodge Equity Release home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
• Is it possible to apply to borrow a further advance from Hodge Equity Release as part of a Transfer of Equity?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Hodge Equity Release?

Sample of questions in a lawyer form relating to Hodge Equity Release Transfer of Equity

Information to consider in in addition to the above Hodge Equity Release 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 Hodge Equity Release 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 have a license to do so from the freeholder. If such terms are not adhered to 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 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 conveyancer 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.

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 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.