Questions and answers: Precise Mortgages transfer of equity

• What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and refinance - moving over to Precise Mortgages - and have been quoted Four Hundred pounds including VAT by Precise Mortgages's approved conveyancer, Have I been over quoted?
• My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Precise Mortgages home loan. I have contacted Precise Mortgages for the transfer of equity application. What happens next?
• I am trying to find a lawyer to handle my transfer of equity. Precise Mortgages have been approached for a refinancing. I considered asking my mortgage broker. I understand he may get a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic misguided?
• I intend to remortgage my apartment in Witham switching from Accord to Precise Mortgages. The flat is currently in joint names but intend for it to be in my name only as and when I remortgage. My husband has verbally consented to this and is happy to sign a form but neither of us want to incur lawyer charges.
• My friend and I got a joint mortgage with Precise Mortgages on a flat about a year ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Is there likely to be any problem with Precise Mortgages with him being on the hook for the total loan as opposed to only part of it?
• Can I apply to borrow more money from Precise Mortgages as part of a Transfer of Equity?
• When it comes to transfer of equity conveyancing involving refinance with Precise Mortgages should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Questions that your conveyancing solicitor may ask about your Precise Mortgages Transfer of Equity

Caveats to be read in conjunction with 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

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach 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 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 finalisation 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on 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.