Nationwide Building Society transfer of equity: q and a’s
- Can I transfer the equity held in my property with my Nationwide Building Society mortgage?
- My decree absolute is through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Nationwide Building Society mortgage. I have asked Nationwide Building Society for the transfer of equity application. What are my next steps?
- My Nationwide Building Society mortgage is in joint names with ex, who is agreeable to be removed and put the house in my name alone. Nationwide Building Society have consented to the transfer of equity to my individual name. Do Nationwide Building Society call my employer to verify my salary?
- I got my Decree Absolute in 2010. Foolishly I never dealt with the transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Nationwide Building Society is willing to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?
- Me and a friend got a joint mortgage with Nationwide Building Society on a house a couple of years ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential problem with Nationwide Building Society with him being on the hook for the total loan rather than only part of it?
- Nationwide Building Society have just agreed I can take over the home loan on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
- Can you tell me how to have a person removed off the title documents to a property if the home loan is with Nationwide Building Society
Sample of questions in a conveyancer questionnaire concerning a Nationwide Building Society Transfer of Equity
Please clarify if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
If 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.
Have you approached Nationwide Building Society to obtain consent to the Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Information to consider in supporting the above Nationwide Building Society 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 Nationwide Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require 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 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 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 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 Nationwide Building Society your property may be repossessed.
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.
Content 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.
