Questions and answers: National Westminster Bank transfer of equity
- I got my Decree Absolute in 2011. I simply never dealt with the transfer ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. National Westminster Bank is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
- I own a flat in Romsey
, with a National Westminster Bank loan with my former partner. He and his fiance are going to buy me out. We had approval from National Westminster Bank to remove my name with hers. The transfer of equity has to be completed by a lawyer for National Westminster Bank (supposedly). In order to save fees can I deal with the Land Registry change?
- Law week I split up with my partner of thirty years. I'm now living with my parents again and she wishes to remain in the apartment and pay me off. What portion am I entitled to. Is it 50% of the equity after redeeming 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 walked over
- I plan to refinance my flat in Witham
switching from Skipton to National Westminster Bank. The flat is jointly owned but intend for it to be in my sole name when I remortgage. My former partner is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- What are my options where I am not happy with the conveyancer who conducted our transfer of equity conveyancing?
- National Westminster Bank have today agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
- How and when do I pay the Stamp Duty Land Tax payable for the transfer of equity in my property in my name alone which is taking place simultaneously with a refinancing with National Westminster Bank?
Questions that your lawyer may ask in relation to your National Westminster Bank Transfer of Equity
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
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)?
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?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Information to consider in further to the above National Westminster Bank transfer of equity Info :
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, provisions in the lease may have a requirement for notices to be served and 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 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 market value of the property at the conclusion 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 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.
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.
