Common questions relating to National Westminster Bank transfer of equity
- I am thinking of refinancing my home in Dunnington
does my lawyer have to be on the National Westminster Bank Conveyancing panel. The conveyancing also involves a transfer of equity.
- Have recently separated from my ex of thirty years. I'm now living with my parents again and she wishes to remain in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the mortgage with National Westminster Bank? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being walked over
- How and when do I incur stamp duty chargeable for the transfer of equity in my house in my sole name which is happening simultaneously with a switching mortgage with National Westminster Bank?
- I am am in need of a conveyancing solicitor to handle my transfer of equity. National Westminster Bank are dealing with the remortgage. I considered asking my mortgage broker. I understand he may get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
- Is it possible to transfer the equity held in my property with my National Westminster Bank mortgage?
- I am transferring my equity in flat in Warwick to the other co-owners fiance, they are reapplying to National Westminster Bank. We are debating as to who should cover the costs of the transfer of equity. Is this normally split or is one party liable for the costs of?
- As things stand I have a joint National Westminster Bank mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to buy somewhere with my partner. The outstanding mortgage is in the region 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty involved?
Examples of information requested in a conveyancer questionnaire concerning a National Westminster Bank Transfer of Equity
Please give the details of anyone to be removed from the property title?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Has consent been obtained from National Westminster Bank to the proposed transfer of equity?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Information to consider in supporting the above National Westminster Bank transfer of equity Info :
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 Westminster Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach 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 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 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 valuation of the property at the time of completion of the transfer of equity transaction.
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 conveyancer 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 conveyancer 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.