Common questions relating to National Westminster Bank transfer of equity
- I co-own a property in Heathfield
, with a National Westminster Bank loan with my ex partner. Him and his fiance are going to buy me out. We had approval from National Westminster Bank to substitute my name with hers. The transfer of equity needs to be done by a lawyer for National Westminster Bank (apparently). In order to save fees can I do the Land Registry formalities?
- At what stage do I cover the costs of stamp duty payable for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage with National Westminster Bank?
- I am planning on removing a name from a joint mortgage and the National Westminster Bank require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Winchelsea
lawyer to deal with the transfer of equity? They need to be on the National Westminster Bank conveyancing panel.
- I currently have a joint National Westminster Bank mortgage with my cousin and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, to enable me to purchase somewhere with my fiance. The remaining mortgage is about 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
- Can you tell me how to have a person removed from the deeds to a property where the mortgage is with National Westminster Bank
- Can I transfer the equity held in my property with my National Westminster Bank home loan?
- I am disposing of my equity in flat in Hendon to my co-owners husband, they are reapplying to National Westminster Bank. We are haggling as to who should pay the charges for the transfer of equity. Should this be split or is one party liable for the legal bill?
Examples of questions in a conveyancing solicitor form concerning a National Westminster Bank Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
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 provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Please give the details of anyone to be extracted from the property title?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
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 properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 varies based on the market value of the property at the time of completion 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 conveyancing solicitor 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 does not constitute 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.