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Precise Mortgages transfer of equity: q and a’s

  • I co-own a house in Wakefield , with a Precise Mortgages mortgage with my ex husband. Him and his fiance are going to buy me out. We had consent from Precise Mortgages to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for Precise Mortgages (apparently). Is it possible for us to deal with the Land Registry formalities?
  • My ex are seeking to get a conveyancer in place for a remortgage with Precise Mortgages. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over England and Wales. How necessary is it to appoint a lawyer local to us?
  • My Precise Mortgages home loan is in joint names with ex, he has agreed to be removed and put the house in my name alone. Precise Mortgages will permit the transfer of equity to me solely. Will Precise Mortgages get in touch with my boss to confirm my salary?
  • I purchased a property with a friend in 2008 Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Precise Mortgages mortgage. There is a significant difference between the value the Precise Mortgages hold and what the property would sell for currently. Can you offer any advice?
  • Have recently split up with my partner of 18 years. I'm now living with my mum and dad and she wishes to stay in the property and buy me out. What percentage do I get. Is it half of the equity after discharging the mortgage with Precise Mortgages? I assume proper valuations are required but I really need to be sure that I'm getting I am not being walked over
  • What can I do where I am dissatisfied with the conveyancer who undertook our transfer of equity conveyancing?
  • I intend to remortgage my apartment in Miles Platting switching from Yorkshire Bank Home Loans to Precise Mortgages. The apartment is currently in joint names but intend for it to be in my sole name as and when I switch. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancer involved.

Information that may be required from your conveyancer could ask in relation to your Precise Mortgages Transfer of Equity

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

If are going to hold 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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please let us know if you are making any payment for the Transfer of Equity and to whom and notify us the amount?

Has consent been obtained from Precise Mortgages to the proposed transfer of equity?

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Tax and Legal

There are numerous potential 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 have a requirement for notices to be served and 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.

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 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 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 time of completion 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.

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.


Frequently asked questions relating to Precise Mortgages transfer of equity