Recently asked questions relating to National Westminster Bank transfer of equity
- At what stage do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my name alone which is taking place simultaneously with a switching mortgage via National Westminster Bank?
- What if my application doesn't meet National Westminster Bank lending criteria for a transfer of equity?
- I am searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with National Westminster Bank. I want to avoid being ripped off but with so many conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
- I co-own a house in Dunnington
, with a National Westminster Bank loan with my ex partner. He and his fiance are going to buy me out. We had the go ahead from National Westminster Bank to replace my name with hers. The transfer of equity needs to be done by a conveyancer for National Westminster Bank (supposedly). In order to save fees can I deal with the Land Registry change?
- The mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with National Westminster Bank - won’t it be better to just instruct them?
- My dad died early last year leaving a loan-free semi to me and my half brother equally. He has always lived in the premises, there was a condition in her will saying the premisescould not be sold for 2 years after her passing so he could remain there for a while. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the usual way to acquire my half from me?
- As things stand I have a joint National Westminster Bank mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is about 300k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
Information that may be required from your lawyer is likely to ask regarding your National Westminster Bank Transfer of Equity
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Have you approached National Westminster Bank to seek consent to the Transfer of Equity
Please provide the details of anyone to be extracted from the title deeds?
General Advice to read in in addition to 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 have a license to do so from 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 pursuant to 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 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 finalisation 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 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.
