Precise Mortgages transfer of equity example support desk enquires
- When it comes to transfer of equity conveyancing involving a remortgage with Precise Mortgages should I be charged VAT 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
- My current mortgage is with Precise Mortgages. Can I transfer equity to someone who is not yet 18 years old?
- I am planning on removing a name from a joint mortgage and the Precise Mortgages need me to use a conveyancing solicitor to carry out the paperwork. 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.
- I recently bought a flat without my partner's name on the ownership paperwork. My conveyancer said it is due to the fact that she is not in the mortgage with Precise Mortgages. Is it possible for me to put her name on the deeds?
- I co-own a apartment in Wakefield
, with a Precise Mortgages loan with my ex husband. He and his new partner are going to buy me out. We had approval from Precise Mortgages to remove 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 change?
- As things stand I have a joint Precise Mortgages mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
- Me and a friend got a joint mortgage with Precise Mortgages on a house about a year ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure where do we go? Would there be any potential problem with Precise Mortgages with him being responsible for the total mortgage as opposed to only part of it?
Information that may be required from your lawyer may ask in relation to your Precise Mortgages Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be extracted from the title deeds?
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 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?
Please list all persons who occupy the property, their respective ages and relationships to you.
General Advice to read in in addition to 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 titles
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Precise Mortgages your property may be repossessed.
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.