National Westminster Bank transfer of equity: q and a’s
- I currently have a joint National Westminster Bank mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to buy a property with my partner. The remaining mortgage is in the region 200k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
- My wife and myself jointly own a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. Assuming National Westminster Bank are happy with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
- Taking into account that we have been 5 years apart I have opted to give up my interest in the property to my husband who is refinancing with National Westminster Bank. Could this transfer of equity be done in four weeks?
- What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to National Westminster Bank - and have been quoted £350 plus VAT by National Westminster Bank's approved conveyancing solicitor, Is this a reasonable price?
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with National Westminster Bank?
- What is the process for having a person removed from the title documents to a house where the home loan is with National Westminster Bank
- My brother and I got a joint mortgage with National Westminster Bank on a flat about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Is there likely to be any problem with National Westminster Bank with him being on the hook for the total loan as opposed to only half of it?
Examples of questions in a conveyancing solicitor questionnaire concerning a National Westminster Bank Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the title deeds?
Please provide the details of anyone to be removed from the property title?
General Advice to read in supplemental the above National Westminster Bank transfer of equity Info :
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 Westminster Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 Westminster Bank 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 Westminster Bank 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 market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with National Westminster Bank.
Preparing the Transfer of Equity with a National Westminster Bank 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 Westminster Bank 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.
Content 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.