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Sample questions relating to Nationwide Building Society transfer of equity

  • Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Nationwide Building Society?
  • My mother died early last year leaving a mortgage-free property to me and my step brother in equal shared. He has always lived in the property, there was a clause in the will specifying that the propertycould not be sold for 2 years after her death so he could remain there for a prescribed period. He now wishes to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my half from me?
  • I understand we would need at least AP1 and TR1. Is this true?
  • Nationwide Building Society have today 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 of the house on top?
  • My current home loan is with Nationwide Building Society. Can I transfer equity to someone under 18 years old?
  • What if my application doesn't meet Nationwide Building Society lending criteria for a transfer of equity?
  • Two years ago I purchased a apartment without my partner's name on the ownership paperwork. My lawyer claimed it is due to the fact that she was not in the loan offer with Nationwide Building Society. I'm wondering is there any way that I can put her name on the deeds?

Information that may be required from your conveyancing solicitor is likely to ask regarding your Nationwide Building Society Transfer of Equity

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

Have you approached Nationwide Building Society to seek consent to the Transfer of Equity

Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us the amount?

Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?

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

Please provide the details of anyone to be added to the title deeds?

Caveats to be read in supporting the above Nationwide Building Society transfer of equity Questions and Answers :

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 Nationwide Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, 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 terms are not adhered to you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of 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 Nationwide Building Society 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 Nationwide Building Society 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 conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Nationwide Building Society.

Preparing the Transfer of Equity with a Nationwide Building Society 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 Nationwide Building Society 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.

Information contained within 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 Nationwide BS transfer of equity