Sample questions relating to Perenna transfer of equity

• I am thinking of remortgaging my home in Miles Platting does my lawyer have to be on the Perenna Conveyancing panel. The conveyancing also involves a transfer of equity.
• I am transferring my equity in flat in Woodside to the other co-owners fiance, they are sticking with Perenna as the the existing lender. We are in heated discussion as to who should pay the costs of the transfer of equity. Is this normally split or is one party liable for the legal bill?
• Am I best advised cancel the direct debit for my mortgage with Perenna once a date for my remortgage and transfer of equity has been agreed?
• Is it possible to transfer the equity held in my property with my Perenna home loan?
• Have recently split up with my partner of 18 years. I'm now back with my mum and dad and she wants to stay in the apartment and pay me off. What percentage do I get. Is it 50% of the equity after discharging the Perenna home loan? I assume proper valuations are necessary but I really need ensure that I'm getting what I am entitled to
• My partner and I jointly own a flat in Miles Platting . Home loan is with Perenna. I wish to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be simple?
• I am filling out a Perenna transfer of equity request and have arrived at the questions that asks about debts etc. I do some debts that I have been clearing over a long period, I understand that they no longer remain my credit score. Must I set these out?

Examples of questions in a conveyancer form concerning a Perenna Transfer of Equity

Information to consider in conjunction with the above Perenna transfer of equity Info :

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 Perenna conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under 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 conveyancing solicitor will check with Perenna 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 Perenna 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.

Preparing the Transfer of Equity with a Perenna 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 Perenna 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.