Frequently asked questions relating to Perenna transfer of equity

• I plan to remortgage my maisonette in Miles Platting moving from Leeds Building Society to Perenna. The maisonette is jointly owned but I would like it to be in my name only as and when I transfer. My former partner is OK with this and is willing to transfer equity but neither of us want to incur lawyer charges.
• I acquired a house with my brother in 2008 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Perenna mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• Have recently separated from my wife of thirty years. I'm now living with my mum and dad and she wishes to stay in the property and buy me out. What portion do I get. 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 sure that I'm getting the best deal
• My ex-fiance and I are searching for a dependable conveyancing lawyer to assist in a transfer of equity and refinance with Perenna. I I am fearful of by bill escalating out of control but with various conveyancing solicitors who do transfer of equity conveyancing to choose from...who do I opt for?
• My partner and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order reduce our tax on rental income. If Perenna are content with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• Having been a number of years apart I have made the decision to transfer my interest in the former home to my husband who is refinancing with Perenna. Can a transfer of equity be completed inside 28 days?
• At what point do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my sole name which is happening simultaneously with a refinancing via Perenna?

Information that may be required from your lawyer could ask in relation to your Perenna Transfer of Equity

General Advice to read in further to the above Perenna transfer of equity Questions and Answers :

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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of your covenants under 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 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 conveyancer 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Perenna Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 provided on 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.