Examples of recent questions relating to Precise Mortgages transfer of equity

• Can you tell me how to have a person removed from the deeds to a property where the home loan is with Precise Mortgages
• What is the process for adding or removing names (transfer of equity) to or from my Precise Mortgages mortgage account?
• My former husband are looking to get a lawyer in place for a new mortgage with Precise Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over England and Wales. Is it important to instruct a conveyancer local to us?
• I currently have a joint Precise Mortgages mortgage with my brother and am investigating the option of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere with my partner. The remaining mortgage is approx 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
• Will I have to pay any charges for a Transfer of Equity where the current home loan is with Precise Mortgages?
• Having been three years estranged I have made the decision to give up my share of the former home to my husband who is refinancing with Precise Mortgages. Could this transfer of equity be done inside one month?
• Law week I split up with my wife of thirty years. I'm now living with my parents again and she wishes to remain in the apartment and buy me out. What portion do I get. Is it 50% of the equity after paying off the mortgage with Precise Mortgages? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to

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

Information to consider in further to 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, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 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 market value of the property at the conclusion 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on 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.