Frequently asked questions relating to Nationwide Building Society transfer of equity
- What should I be budgeting for when it comes to what solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to Nationwide Building Society - and have been quoted Four Hundred pounds including VAT by Nationwide Building Society's approved lawyer, Have I been over quoted?
- My father died seven months ago leaving a mortgage-free semi to me and my half brother in equal shared. He has always lived in the property, there was a provision in the will specifying that the premisescould not be sold for 2 years after her passing so he could reside there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have discussed 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 buy my half from me?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- Can I apply to request a further advance from Nationwide Building Society as part of a Transfer of Equity?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Nationwide Building Society?
- Am I best advised cancel my mortgage payments with Nationwide Building Society once a date for my remortgage and transfer of equity has been agreed?
- I got divorced three years ago. Foolishly I never dealt with the transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Nationwide Building Society is happy to transfer the full equity in my name (affordability checks done). Does she need any legal representation?
Questions that your lawyer is likely to ask regarding your Nationwide Building Society Transfer of Equity
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Have you approached Nationwide Building Society to obtain consent to the Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be removed from the property title?
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Important warnings to consider in supporting the above Nationwide Building Society transfer of equity information :
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 properties
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 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 transaction.
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 lawyer 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 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 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.