Top seven questions relating to Precise Mortgages transfer of equity

• My father died seven months ago leaving a mortgage-free semi to me and my step brother 50:50. Having continues to reside at the property, there was a provision in the will saying the premisescould not be sold for three years after her death so he could reside there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my share?
• I am trying to find a conveyancing solicitor to handle my transfer of equity. Precise Mortgages are dealing with the remortgage. I thought of asking my mortgage broker. I understand he will likely get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic correct?
• I am filling out a Precise Mortgages transfer of equity request and have come to the questions that asks about debts etc. There are some debts that I have been reducing since 2009, in fact they no longer remain my credit rating. Do I need to reveal these?
• What is the process for having someone removed from the deeds to a house if the home loan is with Precise Mortgages
• I plan to refinance my home in Timperley changing from Lloyds TSB to Precise Mortgages. The apartment is jointly owned but wish for it to be in my name only as and when I remortgage. My husband has agreed to this and is happy to transfer equity but neither of us want to incur lawyer charges.
• Can I transfer the equity held in my property with my Precise Mortgages home loan?
• Law week I separated from my ex of twenty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after paying off the mortgage with Precise Mortgages? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being taken advantage of

Information that may be required from your conveyancer could ask regarding your Precise Mortgages Transfer of Equity

General Advice to read in supporting the above Precise Mortgages transfer of equity Info :

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 freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could trigger 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 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 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 lawyer 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 contained within 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.