Frequently asked questions relating to National Westminster Bank transfer of equity
- I am under the impression we would need at least AP1 and TR1. Is this true?
- In 2012 I bought a flat without my wife's name on the ownership paperwork. My lawyer said it is because she is not in the mortgage with National Westminster Bank. Is it possible for me to add her name on the title?
- I am am in need of a conveyancing solicitor to undertake my transfer of equity. National Westminster Bank have been approached for a remortgage. I thought of asking my mortgage broker. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- I already have a mortgage with National Westminster Bank and am retaining my current mortgaging but applying to have have the equity transferred to my sole name so my former husband will no longer be on the mortgage. How long does the whole transfer of equity process take?
- What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I need to transfer equity and refinance - new loan with National Westminster Bank - and have been quoted Four Hundred pounds excluding VAT by National Westminster Bank's approved conveyancing solicitor, Have I been over quoted?
- Will I incur any charges for a Transfer of Equity where the existing home loan is with National Westminster Bank?
- I got divorced in 2012. I simply never dealt with the transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. National Westminster Bank is content to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
Information that may be required from your conveyancer may ask in relation to your National Westminster Bank Transfer of Equity
Please give the details of anyone to be extracted from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Is the transfer of equity subject to a court order? If yes please supply a copy
General Advice to read 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 properties
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 is dependent on the valuation of the property at the time of completion 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 conveyancing solicitor 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.