Common 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 need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the Precise Mortgages conveyancing panel.
• How and when do I cover the costs of stamp duty payable for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage with Precise Mortgages?
• Our financial adviser has suggested using their lawyer for my Transfer of Equity plus remortgage with Precise Mortgages - won’t it be better to just instruct them?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Precise Mortgages mortgage account?
• Am I best advised stop my mortgage payments with Precise Mortgages as soon as a date for my remortgage and transfer of equity has been agreed?
• Can I apply to request more money from Precise Mortgages as part of a Transfer of Equity?
• I already have a mortgage with Precise Mortgages and am retaining my existing mortgaging but seeking to have it in my name alone so my ex will no longer be on the deeds. How long do Precise Mortgages take to process the application?

Information that may be required from your conveyancing solicitor is likely to ask regarding your Precise Mortgages Transfer of Equity

Information to consider in supplemental the above Precise Mortgages transfer of equity information :

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 properties

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such restrictions 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 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 conveyancing solicitor 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 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.