Recently asked questions relating to Precise Mortgages transfer of equity

• My current mortgage is with Precise Mortgages. Can I transfer equity to someone less than eighteen years old?
• I jointly own a apartment in Littleborough , with a Precise Mortgages mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Precise Mortgages to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Precise Mortgages (apparently). Is it possible for us to deal with the Land Registry formalities?
• Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and at the same time remortgaging with Precise Mortgages
• I currently have a joint Precise Mortgages mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
• Will I incur any fees for a Transfer of Equity where the current mortgage is with Precise Mortgages?
• Me and my partner co-own a flat in Ampthill . Home loan is with Precise Mortgages. I wish to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be easy to so?
• I am disposing of my equity in house in Birmingham to my co-owners fiance, they are reapplying to Precise Mortgages. We are debating as to who must pay the fees for the transfer of equity. Is this normally split or is one of us obliged to cover the fees for?

Sample of questions in a conveyancer questionnaire concerning a Precise Mortgages Transfer of Equity

Information to consider in conjunction with the above Precise Mortgages transfer of equity Advice :

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

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 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.

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 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 time of completion of the transfer of equity transaction.

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 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 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.