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Questions and answers: National Westminster Bank transfer of equity

  • I am answering a National Westminster Bank transfer of equity form and have arrived at the part regarding debts etc. There are some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit score. Must I disclose these?
  • I am in the process of removing a name from a joint mortgage and the National Westminster Bank need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Dunnington lawyer to deal with the transfer of equity? They need to be on the National Westminster Bank conveyancing panel.
  • My fiance and myself have equal shares in a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name in order mitigate tax on rental income. If National Westminster Bank are fine 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 would I lose my CGT relief.
  • Last year purchased a house without my wife's name on the title. My conveyancer said it is because she was not in the mortgage with National Westminster Bank. Is it possible for me to put her name on the documents at HM Land Registry?
  • My former wife are looking to get a lawyer in place for a new mortgage with National Westminster Bank. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over UK. Is it important to appoint a lawyer local to us?
  • What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my National Westminster Bank mortgage account?
  • Is it possible to transfer the equity held in my property with my National Westminster Bank home loan?

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

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Have you approached National Westminster Bank to obtain consent to the Transfer of Equity

Please give the name(s) and addresse(s) of anyone to be added to the property title?

Who will be responsible for the costs of the Transfer of Equity?

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

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?

General Advice to read in further to the above National Westminster Bank transfer of equity Questions and Answers :

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, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 lawyer 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with National Westminster Bank your property may be repossessed.

Preparing the Transfer of Equity with a National Westminster Bank Mortgage

When it comes to preparing the the Land Registry documents your lawyer 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to National Westminster Bank transfer of equity