Frequently asked questions relating to Perenna transfer of equity
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Perenna?
- I am hoping to remortgage my apartment in Witham
moving from Virgin Money to Perenna. The apartment is currently in joint names but propose for it to be in my name only as and when I remortgage. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- Me and my former fiance and I are searching for a quality conveyancing lawyer to assist in a transfer of equity and remortgage with Perenna. I I am concerned about by bill escalating out of control but with many conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- My former husband are looking to get a conveyancing solicitor in place for a new mortgage with Perenna. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over England and Wales. Do we need to appoint a conveyancing solicitor local to us?
- When it comes to transfer of equity conveyancing involving refinance with Perenna should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My mum died early last year leaving a unencumbered property to me and my half brother equally. He has always lived in the premises, there was a provision in her will specifying that the propertycould not be sold for 2 years following her death so he could reside there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to buy my share?
- My existing home loan is with Perenna. Can I transfer equity to someone under eighteen years old?
Examples of questions in a conveyancing solicitor form concerning a Perenna Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider in further to the above Perenna 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 Perenna conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and 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.
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 Perenna 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 Perenna 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 time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Perenna your property may be repossessed.
Preparing the Transfer of Equity with a Perenna 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 Perenna 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.