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Questions and answers: Perenna transfer of equity

  • I co-own a flat in Blaenavon , with a Perenna loan with my ex husband. Him and his fiance are going to acquire my share. We had the go ahead from Perenna to remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Perenna (supposedly). Is it possible for us to do the Land Registry formalities?
  • My friend and I got a joint mortgage with Perenna on a apartment a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any concerns with Perenna with him being solely liable for the total loan rather than only part of it?
  • Me and my partner jointly own a property in Sedgefield . Mortgage is with Perenna. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?
  • Have recently split up with my wife of 18 years. I'm now living with my mum and dad and she wants to stay in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after paying off the Perenna home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being taken advantage of
  • I am am in need of a conveyancing solicitor to handle my transfer of equity. Perenna have been approached for a refinancing. I thought of asking my mortgage broker. I understand he will likely receive a referral fee for recommending a firm, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
  • I am thinking of mortgaging my property in Miles Platting does my lawyer need to be on the Perenna Solicitor panel. The conveyancing also involves a transfer of equity.
  • I am hoping to refinance my apartment in Littleborough switching from Leeds Building Society to Perenna. The maisonette is currently in joint names but intend for it to be in my sole name as and when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to incur lawyer fees.

Information that may be required from your conveyancing solicitor could ask regarding your Perenna Transfer of Equity

Please provide a copy of your National Insurance Number?

If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Who will be responsible for the costs of the Transfer of Equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Is the transfer of equity subject to a court order? If yes please supply a copy

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in supporting the above Perenna 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 Perenna conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed 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 pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
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 conveyancing solicitor 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 conveyancing solicitor 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 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.


Frequently asked questions relating to Perenna transfer of equity