Sample questions relating to Precise Mortgages transfer of equity
- I currently have a joint Precise Mortgages mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is approx 300k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
- I got divorced three years ago. I simply never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Precise Mortgages is content to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
- Law week I separated from my ex of 18 years. I'm now back with my parents again and she wants to remain in the flat and buy me out. What percentage do I get. Is it half of the equity after redeeming the mortgage with Precise Mortgages? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
- My divorce is through as is the consent order. Now I need to deal with the transfer of equity for the property and the Precise Mortgages home loan. I have contacted Precise Mortgages for the transfer of equity application. What are my next steps?
- I am in the process of removing a name from a joint mortgage and the Precise Mortgages need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Precise Mortgages conveyancing panel.
- Will I incur any fees for a Transfer of Equity where the current mortgage is with Precise Mortgages?
- What should I be budgeting for when it comes to what conveyancing costs are for a transfer of equity? I need to transfer equity and remortgage - moving over to Precise Mortgages - and have been quoted £250 excluding VAT by Precise Mortgages's appointed conveyancer, Have I been over quoted?
Examples of questions in a lawyer questionnaire relating to Precise Mortgages Transfer of Equity
Has one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the Transfer of Equity?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in in addition to 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, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of 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 situations, 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
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 conveyancer 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 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.