Precise Mortgages transfer of equity: q and a’s

• I am in the process of removing a name from a joint mortgage and the Precise Mortgages require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the Precise Mortgages conveyancing panel.
• I am transferring my share of a apartment in Woodside to my co-owners husband, they are reapplying to Precise Mortgages. We are haggling as to who must pay the legal bill for the transfer of equity. Is this usually shared or is one party obliged to cover the charges for?
• My father passed away last May leaving a mortgage-free bungalow to me and my brother equally. He has always lived in the premises, there was a condition in her will saying the housecould not be sold for 24 months after her passing so he could reside there for a specified time frame. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to buy my share?
• My decree absolute is through as is the consent order. Now I have to address the transfer of equity at the land registry and the Precise Mortgages home loan. I have called Precise Mortgages for the transfer of equity forms. What do I do now?
• Me and my partner co-own a property in Timperley . Home loan 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 simple?
• What if my application doesn't meet Precise Mortgages lending criteria for a transfer of equity?
• I acquired a flat with my brother in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Precise Mortgages mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Sample of information requested in a lawyer questionnaire relating to Precise Mortgages Transfer of Equity

Important warnings to consider in in addition to the above Precise Mortgages transfer of equity Questions and Answers :

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, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions 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.

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 market value 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 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 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.