Frequently asked questions relating to National Counties Building Society transfer of equity
- At what point do I pay stamp duty due for the transfer of equity in my home in my sole name which is taking place at the same time as a remortgage with National Counties Building Society?
- My partner and I equally own a buy to let. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name to mitigate tax on rental income. If National Counties Building Society are fine with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- I am in the process of removing a name from a joint mortgage and the National Counties Building Society need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Friern Barnet
lawyer to deal with the transfer of equity? They need to be on the National Counties Building Society conveyancing panel.
- My decree absolute is through as is the consent order. Now I need to address the transfer of equity for the property and the National Counties Building Society home loan. I have contacted National Counties Building Society for the transfer of equity application. What are my next steps?
- Given that we have been a number of years estranged I have made the decision to give up my share of our property to my husband who is refinancing with National Counties Building Society. Could this transfer of equity be done in four weeks?
- My father passed away seven months ago leaving a unencumbered bungalow to me and my brother equally. Having continues to reside at the house, there was a clause in the will specifying that the housecould not be sold for 2 years following her death so he could continue to live there for a while. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
- Two years ago I purchased a house without my fiance’s name on the deeds. My lawyer advised it is due to the fact that she is not in the loan offer with National Counties Building Society. Is it possible for me to add her name on the title?
Examples of information requested in a conveyancer questionnaire relating to National Counties Building Society Transfer of Equity
If 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” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please provide the details of anyone to be extracted from the title deeds?
Please give the details of anyone to be added to the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
General Advice to read in conjunction with the above National Counties Building Society 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 National Counties Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. 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.
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 conveyancing solicitor will check with National Counties Building Society 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 National Counties Building Society 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 conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with National Counties Building Society.
Preparing the Transfer of Equity with a National Counties Building Society 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 National Counties Building Society 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 contained within 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.