Recently asked questions relating to Precise Mortgages transfer of equity

• I am hoping to refinance my home in Ampthill changing from RBS to Precise Mortgages. The home is jointly owned but intend for it to be in my sole name as and when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to incur lawyer charges.
• My partner and I co-own a flat in Friern Barnet . Mortgage is with Precise Mortgages. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be simple?
• My brother and I got a joint mortgage with Precise Mortgages on a house in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any issue with Precise Mortgages with him being on the hook for the total loan as opposed to only half of it?
• How and when do I cover the costs of stamp duty due for the transfer of equity in my property in my name alone which is taking place at the same time as a remortgage with Precise Mortgages?
• I am in the process of refinancing my house in Wakefield does my lawyer have to be on the Precise Mortgages Solicitor panel. The conveyancing also involves a transfer of equity.
• I am led to believe we would need at least AP1 and TR1. Is this true?
• I am in the market for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Precise Mortgages. I want to avoid being ripped off but with lots of conveyancing organisations who do transfer of equity conveyancing out there...who's the best?

Information that may be required from your conveyancing solicitor could ask about your Precise Mortgages Transfer of Equity

Information to consider in further to the above Precise Mortgages 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 Precise Mortgages conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 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 valuation 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 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 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.