Common questions relating to Nationwide Building Society transfer of equity

• My current home loan is with Nationwide Building Society. Can I transfer equity to someone under 18 years old?
• I already have a mortgage with Nationwide Building Society and am retaining my existing mortgaging but wish to have have the equity transferred to my name alone so my ex will be removed from the mortgage. How long do Nationwide Building Society take to process the application?
• I am transferring my share of a flat in Hendon to the other co-owners fiance, they are sticking with Nationwide Building Society being the the existing mortgage company. We are debating as to who should pay the fees for the transfer of equity. Should this be shared or is one party liable for the costs of?
• My wife and myself jointly own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name to reduce our tax on the letting income. If Nationwide Building Society are happy with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
• Can you tell me how to have a person removed off the title documents to a property where the home loan is with Nationwide Building Society
• I am planning on removing a name from a joint mortgage and the Nationwide Building Society need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Sedgefield conveyancing solicitor to deal with the transfer of equity? They need to be on the Nationwide Building Society conveyancing panel.
• Can I transfer the equity held in my property with my Nationwide Building Society mortgage?

Examples of information requested in a conveyancing solicitor form relating to Nationwide Building Society Transfer of Equity

General Advice to read in supplemental 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 premises

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with 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 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 conveyancer 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.

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