Top seven questions relating to National Counties Building Society transfer of equity
- I am in the process of removing a name from a joint mortgage and the National Counties Building Society need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Winchelsea
conveyancing solicitor 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 must address the transfer of equity for the property and the National Counties Building Society mortgage. I have contacted National Counties Building Society for the transfer of equity forms. What happens next?
- My National Counties Building Society home loan we jointly entered into with ex, who is agreeable to come off the mortgage and let me have the property. National Counties Building Society will permit the transfer of equity to my individual name. Do National Counties Building Society write my employer to verify my salary?
- My wife and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name in order reduce our tax on rental income. Assuming National Counties Building Society are fine with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
- My dad passed away half a year ago leaving a mortgage-free bungalow to me and my brother 50:50. He has always lived in the premises, there was a condition in her will specifying that the premisescould not be sold for 24 months after her passing so he could reside there for a while. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to purchase my equity?
- Me and my partner jointly own a house in Ampthill . Home loan is with National Counties Building Society. I would like to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be simple?
- I am answering a National Counties Building Society transfer of equity application and have arrived at the part regarding defaults etc. I do some debts that I have been clearing over a long period, I understand that they no longer remain my credit rating. Am I obliged to declare these?
Examples of questions in a conveyancing solicitor questionnaire relating to National Counties Building Society Transfer of Equity
Please inform us where you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Has consent been obtained from National Counties Building Society to the proposed transfer of equity?
Where you are adding someone 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.
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
General Advice to read in in addition to the above National Counties Building Society 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 National Counties Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with National Counties Building Society your property may be repossessed.
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 conveyancer 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.