Frequently asked questions relating to National Counties Building Society transfer of equity

• I plan to remortgage my home in Crabtree switching from Virgin Money to National Counties Building Society. The apartment is currently in joint names but propose for it to be in my name only once I transfer. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.
• My divorce has gone through as is the consent order. Now I must deal with the transfer of equity for the property and the National Counties Building Society mortgage. I have called National Counties Building Society for the transfer of equity application. What happens next?
• My ex-wife and I are in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with National Counties Building Society. I I am concerned about being overcharged and there are so many conveyancing organisations who do transfer of equity conveyancing to pick from...how do I know which to appoint?
• I already have a home loan with National Counties Building Society and am maintaining my existing mortgaging but seeking to have it in my sole name so my former partner won't be on it any longer. How long does the whole transfer of equity process take?
• I am disposing of my equity in property in Birmingham to the other co-owners husband, they are reapplying to National Counties Building Society. We are debating as to who should cover the fees for the transfer of equity. Should this be split or is one of us obliged to cover the legal bill?
• I got divorced three years ago. I simply never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. National Counties Building Society is content to transfer the full equity in my name (financial checks done). Does she need a conveyancer?
• Is it sensible to stop my mortgage payments with National Counties Building Society as soon as a date for my remortgage and transfer of equity has been agreed?

Sample of information requested in a conveyancing solicitor questionnaire relating to National Counties Building Society Transfer of Equity

Caveats to be read in supplemental the above National Counties Building Society transfer of equity Advice :

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

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 situations, 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 finalisation 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 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 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.