Precise Mortgages transfer of equity example support desk enquires
- What do I do if I am dissatisfied with the conveyancing solicitor who handled my transfer of equity conveyancing?
- Me and my partner jointly own a house in Crabtree
. Mortgage is with Precise Mortgages. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be easy to so?
- I currently have a joint Precise Mortgages mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is approx 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
- I am in the process of removing a name from a joint mortgage and the Precise Mortgages require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Rye
conveyancer to deal with the transfer of equity? They need to be on the Precise Mortgages conveyancing panel.
- When it comes to transfer of equity conveyancing involving refinance with Precise Mortgages should I be paying value added tax 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
- Me and my former husband and I are searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Precise Mortgages. I really don't want to get ripped off but with lots of conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?
- My wife and I equally own a buy to let. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Precise Mortgages are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
Sample of questions in a conveyancing solicitor questionnaire relating to Precise Mortgages Transfer of Equity
Has consent been obtained from Precise Mortgages to the proposed transfer of equity?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Has one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
General Advice to read in further to the above Precise Mortgages transfer of equity Questions and Answers :
Tax and Legal
There are numerous potential 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 premises
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 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.
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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Precise Mortgages.
Preparing the Transfer of Equity with a Precise Mortgages 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 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.
Content 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.