Common questions relating to Precise Mortgages transfer of equity

• My wife and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name with a view to mitigate tax on rental income. If Precise Mortgages are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
• I am looking for a conveyancer to handle my transfer of equity. Precise Mortgages have been approached for a remortgage. I thought of asking my financial adviser. I am lead to believe he may receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
• I already have a home loan with Precise Mortgages and am keeping my current mortgaging but seeking to have have the equity transferred to my name only so my former wife will be removed from the title. How long does the whole transfer of equity process take?
• Me and my former wife and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Precise Mortgages. I am aware of the risk of getting ripped off and there's plenty conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
• What is the process for adding or subtracting names (transfer of equity) to or from my Precise Mortgages mortgage account?
• Is there such a thing a transfer of equity stamp duty calculator?
• My Precise Mortgages mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Precise Mortgages will permit the transfer of equity to my individual name. Do Precise Mortgages call my company to verify my salary?

Sample of information requested in a conveyancer form concerning a Precise Mortgages Transfer of Equity

Caveats to be read in supplemental the above Precise Mortgages transfer of equity information :

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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 lawyer 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

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.