Frequently asked questions relating to National Westminster Bank transfer of equity

• I am filling out a National Westminster Bank transfer of equity form and have come to the questions regarding debts etc. I do some debts that I have been discharging since 2009, in fact they have long since disappeared from my credit score. Am I obliged to reveal these?
• My fiance and myself equally own a BTL. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name to reduce our tax on rental 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.
• Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time refinancing with National Westminster Bank
• Having been three years separated I have decided to transfer my interest in the property to my husband who is refinancing with National Westminster Bank. Could this transfer of equity be completed in less than one month?
• How much the typical legal fees are for a transfer of equity? I'm in the process of remortgaging - moving over to National Westminster Bank - and have been quoted £350 plus VAT by National Westminster Bank's approved , Have I been over quoted?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• Have recently split up with 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 paying off the mortgage with National Westminster Bank? I assume proper valuations are necessary but I really need to be sure that I'm getting I am not being taken advantage of

Questions that your lawyer is likely to ask regarding your National Westminster Bank Transfer of Equity

Important warnings to consider in in addition to the above National Westminster Bank 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 Westminster Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in 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 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 valuation of the property at the conclusion of the transfer of equity conveyancing.

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.

Information contained within 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.