Transfer of Equity - Lender says yes, solictor says no.

jennifernil

My daughter approached the HSBC panel solicitor who acted for her in her purchase 3 years back, they were not interested apparently.

She is now using the solicitor we use.

Xanthippus

Oh, that sounds disappointing Jennifer. You would have thought a HSBC panel solicitor would have shown a bit more willingness than that....I hope they were removed from the list afterwards!

Jennifer, could you by any chance explain in any more detail exactly how HSBC are giving your daughter their permission in writing? Last time we spoke to them they said they couldn't issue a letter stating their policy position. Is your daughter's solicitor now simply dealing with them directly?

Any key terms / processes that you know have been helpful in getting their consent in writing would be very useful for us to know given the stage we are at.

jennifernil

Yes, she was told to go to a solicitor, get the solicitor to write to them (HSBC) and request permission to make the change.

They (HSBC) would then (hopefully!) reply saying they had no objections, and the solicitor would then submit the forms, in her case to Edinburgh, and that would be it.

However, solicitor initially contacted HSBC to request title deed and got no reply so has rung them to them to try and get them moving, so nothing has happened as yet. They have agreed they got his request, and have again said there will be no problem, but seem in no hurry to actually do anything.

It is very frustrating.

jennifernil

Just as an extra point......

My daughter is doing this now because of the impending additional stamp duty thing (LBTT in Scotland).

She owns a flat which she rents out since buying her current home 3 years back, so the house is her main residence.

Her intended also owns a flat, which he has rented out since he moved in with her a year ago. The house is his main residence in fact but, as he currently owns no share in it, the flat would still be considered his main residence for stamp duty purposes.

This means that, as a couple are considered as one in these transactions, should they in a few years decide to move to a bigger house, and he still owns the flat, he will not be considered as replacing his main residence, so the whole new property would incur the additional 3% charge, as the proposals stand at present.

With the price of houses around here, that would be an ADDITIONAL £15000+ , so she is not taking any chances and is trying to sort it now.

OP......if you alone own your main residence, if you and your partner ever wish to move, you would be in the same position.

Xanthippus

Hi Jennifer,

Thanks, whilst you are North of the border it is interesting to hear just how similar your daughter's situation is to ourselves (since my partner and I both own our own rental properties). I can certainly appreciate the frustration at having HSBC drag their feet on getting the paperwork out, but it sounds like you have jumped some of the main hurdles and it shouldn't be all that long until your daughter can put in the formal Transfer of Equity submission to land registry. Fingers crossed!

I put my partner onto the title deeds of my main residence within the last year, so in the long run that will at least be one issue we don't have to think about, but a great thing to point out, cheers Jennifer.

jennifernil

One less thing for you to worry about!

However, you better fix the transfer of equity on the flat soon, or that could mean you paying additional SD as it will be an additional property for you.

Only if the "consideration" exceeds £40k though.