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National Counties Building Society

Common questions relating to National Counties Building Society transfer of equity

  • Having been 5 years apart I have made the decision to transfer my interest in the apartment to my husband who is re-mortgaging with National Counties Building Society. Could this transfer of equity be done inside one month?
  • I am answering a National Counties Building Society transfer of equity form and have arrived at the section regarding defaults etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit rating. Am I obliged to set these out?
  • Will I incur any charges for a Transfer of Equity where the current mortgage is with National Counties Building Society?
  • How do I go about adding or removing names (transfer of equity) to or from my National Counties Building Society mortgage account?
  • My partner and I jointly own a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name to mitigate tax on rental income. If National Counties Building Society are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
  • Can I transfer the equity held in my property with my National Counties Building Society home loan?
  • I am led to believe we would need at least AP1 and TR1. Is this true?

Examples of questions in a conveyancer form relating to National Counties Building Society Transfer of Equity

Would you like us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Has consent been obtained from National Counties Building Society to the proposed transfer of equity?

Please confirm where you are providing any payment for the Transfer of Equity and to whom and disclose any such sums?

Can you provide the details of anyone who jointly owns the property with you?

Please provide a copy of your National Insurance Number?

Caveats to be 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 titles

Should the tenure of your property be 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 landlord. If such conditions are not strictly observed you may be in violation 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
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 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 National Counties Building Society transfer of equity