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National Westminster Bank

Sample questions relating to National Westminster Bank transfer of equity

  • Law month I split up with my partner of thirty years. I'm now back with my parents again and she wants to remain in the property and buy me out. What portion do I get. Is it half of the equity after discharging 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 taken advantage of
  • What is the process for adding or removing names (transfer of equity) to or from my National Westminster Bank mortgage account?
  • Me and a friend got a joint mortgage with National Westminster Bank on a flat in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Is there likely to be any concerns with National Westminster Bank with him being on the hook for the total mortgage as opposed to only part of it?
  • How and when do I cover the costs of the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is taking place simultaneously with a refinancing with National Westminster Bank?
  • I am led to believe we would need at least AP1 and TR1. Is this true?
  • National Westminster Bank yesterday agreed I can take over the home loan on the house. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
  • I am answering a National Westminster Bank transfer of equity application and have come to the questions concerning debts etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit rating. Do I need to disclose these?

Information that may be required from your conveyancer could ask regarding your National Westminster Bank Transfer of Equity

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

Please provide the details of anyone who jointly owns the property with you?

Has consent been obtained from National Westminster Bank to the proposed transfer of equity?

Would you like us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be removed from the property title?

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Important warnings to consider in in addition to the above National Westminster Bank transfer of equity information :

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 properties

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 conveyancer 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 market value of the property at the conclusion of the transfer of equity transaction.
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 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 conveyancing solicitor 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