Top seven questions relating to Hodge transfer of equity
- My Hodge home loan is in joint names with ex, he is agreeable to be removed and let me have the property. Hodge will permit the transfer of equity to me solely. Will Hodge contact my company to verify my salary?
- I got divorced two years ago. For some reason I never got around to change the ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Hodge is happy to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
- The mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Hodge - Is it not simpler advisable to just use them?
- Can you tell me how to have a person removed from the title documents to a property if the home loan is with Hodge
- Me and my former wife and I are in the market for a responsive conveyancing lawyer to help me sell in a transfer of equity and refinance with Hodge. I I am fearful of appointing the wrong one but with many conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
- I am am in need of a lawyer to undertake my transfer of equity. Hodge are dealing with the refinancing. I thought of asking my financial adviser. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
- I own a property in Friern Barnet
, with a Hodge loan with my ex husband. Him and his fiance are going to acquire my share. We had consent from Hodge to replace my name with hers. The transfer of equity needs to be done by a lawyer for Hodge (apparently). Can we deal with the Land Registry change?
Examples of questions in a conveyancing solicitor questionnaire concerning a Hodge Transfer of Equity
Would you like us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Has one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Has consent been obtained from Hodge to the proposed transfer of equity?
Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide a copy of your National Insurance Number?
Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Information to consider in supplemental the above Hodge 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 Hodge conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
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 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 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 conveyancing solicitor will check with Hodge 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 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 market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Hodge.
Preparing the Transfer of Equity with a Hodge 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 Hodge 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.
