Common questions relating to National Counties Building Society transfer of equity

• My brother and I got a joint mortgage with National Counties Building Society on a apartment about a year ago. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any issue with National Counties Building Society with him being on the hook for the total mortgage as opposed to only half of it?
• My decree absolute has gone through as is the consent order. Now I must address the transfer of equity on title deeds and the National Counties Building Society home loan. I have called National Counties Building Society for the transfer of equity application. What are my next steps?
• I am thinking of remortgaging my flat in Dunnington does my lawyer have to be on the National Counties Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
• What if my application doesn't meet National Counties Building Society lending criteria for a transfer of equity?
• Is it sensible to stop the direct debit for my mortgage with National Counties Building Society once a date for my remortgage and transfer of equity has been set?
• How and when do I cover the costs of stamp duty due for the transfer of equity in my house in my name alone which is happening simultaneously with a switching mortgage via National Counties Building Society?
• My ex-fiance and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with National Counties Building Society. I am aware of the possibility of getting ripped off and there are so many conveyancing solicitors who do transfer of equity conveyancing to pick from...who's the best?

Information that may be required from your conveyancer is likely to ask regarding your National Counties Building Society Transfer of Equity

General Advice to read in further to the above National Counties Building Society transfer of equity information :

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 National Counties Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, provisions in 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 restrictions are not strictly observed you may be in breach of the lease. This could potentially result in 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 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a National Counties Building Society 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 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 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 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.