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Precise Mortgages

Common questions relating to Precise Mortgages transfer of equity

  • I co-own a flat in Timperley , with a Precise Mortgages loan with my ex partner. He and his fiance are going to buy me out. We had approval from Precise Mortgages to substitute my name with hers. The transfer of equity needs to be completed by a lawyer for Precise Mortgages (supposedly). Is it possible for us to deal with the Land Registry change?
  • I am hoping to refinance my apartment in Ampthill switching from Lloyds TSB to Precise Mortgages. The maisonette is jointly owned but intend for it to be in my sole name as and when I switch. My wife has agreed to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
  • I got my Decree Absolute in 2012. I simply never got around to change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Precise Mortgages is content to transfer the property and loan in my name (affordability checks done). Does my ex need a conveyancer?
  • What do I do if I am dissatisfied with the conveyancer who handled our transfer of equity transaction?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • In 2012 I bought a flat without my fiance’s name on the deeds. My lawyer advised it is because she was not in the loan offer with Precise Mortgages. I'm wondering is there any way that I can add her name on the deeds?
  • What are the average solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Precise Mortgages - and have been quoted £350 including VAT by Precise Mortgages's appointed lawyer, Have I been over quoted?

Questions that your conveyancer may ask about your Precise Mortgages Transfer of Equity

Please give the details of anyone to be removed from the title deeds?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Who will be responsible for the costs of the Transfer of Equity?

Can you provide the details of those who jointly own the premises with you?

Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Caveats to be read 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 premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
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 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.

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.


Frequently asked questions relating to Precise Mortgages transfer of equity