Sample questions relating to Precise Mortgages transfer of equity
- Me and a friend got a joint mortgage with Precise Mortgages on a house about a year ago. I am now thinking of buying a property by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential issue with Precise Mortgages with him being responsible for the total mortgage rather than only half of it?
- Can you tell me how to have someone removed from the deeds to a property where the home loan is with Precise Mortgages
- My ex-fiance and I are are seeking to find a trustworthy conveyancing lawyer to help me sell in a transfer of equity and remortgage with Precise Mortgages. I I am concerned about by bill escalating out of control but with lots of conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- Law month I separated from my partner of 18 years. I'm now back with my parents again and she wishes to stay in the property and pay me off. What portion do I get. Is it 50% of the equity after redeeming the Precise Mortgages home loan? I assume proper valuations are required but I would like to be confident that I'm getting I am not being taken advantage of
- Been looking at consumer forums that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously switching mortgage with Precise Mortgages
- My financial adviser has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Precise Mortgages - Is it not simpler easier to just instruct them?
- Is it possible to apply to borrow a further advance from Precise Mortgages as part of a Transfer of Equity?
Questions that your lawyer is likely to ask in relation to your Precise Mortgages Transfer of Equity
Please give the details of anyone who jointly owns the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Please provide the details of anyone to be added to the title deeds?
General Advice to read in in addition to the above Precise Mortgages 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 Precise Mortgages 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 restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 conveyancer will check with Precise Mortgages 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 Precise Mortgages 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.
If you do not keep up the payments on your mortgage with Precise Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Precise Mortgages 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 Precise Mortgages 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 lawyer 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 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.