Top seven questions relating to Precise Mortgages transfer of equity
- 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 legalities. Can you recommend a reasonably priced Winchelsea
lawyer to deal with the transfer of equity? They need to be on the Precise Mortgages conveyancing panel.
- Can I transfer the equity held in my property with my Precise Mortgages home loan?
- My father passed away half a year ago leaving a loan-free house to me and my half brother equally. He has always lived in the house, there was a clause in her will saying the propertycould not be sold for 24 months after her passing so he could reside there for a while. He now says he would like to remain in the house 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 usual way to acquire my equity?
- How and when do I incur stamp duty payable for the transfer of equity in my property in my sole name which is taking place at the same time as a switching mortgage via Precise Mortgages?
- My divorce has gone through as is the consent order. Now I need to sort out the transfer of equity at the land registry and the Precise Mortgages mortgage. I have contacted Precise Mortgages for the transfer of equity forms. What are my next steps?
- I am transferring my share of a property in Hendon to the other co-owners fiance, they are sticking with Precise Mortgages as the the existing lender. We are debating as to who must pay the fees for the transfer of equity. Should this be split or is one of us obliged to cover the costs of?
- Precise Mortgages have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds in addition?
Examples of information requested in a lawyer form concerning a Precise Mortgages Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and specify the amount?
Please give the details of anyone to be extracted from the property title?
General Advice to read in supporting 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 premises
If your property is 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 trigger 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 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 varies based on the valuation 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 conveyancing solicitor 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 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.