Top seven questions relating to Nationwide Building Society transfer of equity
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Nationwide Building Society - and have been quoted Three Hundred pounds including VAT by Nationwide Building Society's approved conveyancing solicitor, Have I been over quoted?
- My fiance and I jointly own a investment property. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on rental income. Assuming Nationwide Building Society are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
- My mother passed away early last year leaving a unencumbered bungalow to me and my step brother in equal shared. He has always lived in the house, there was a condition in the will saying the premisescould not be sold for three years after her passing so he could reside there for a while. He now wishes to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to purchase my share?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- What if my application doesn't meet Nationwide Building Society lending criteria for a transfer of equity?
- My former wife are seeking to get a conveyancer in place for a refinance with Nationwide Building Society. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over the country. Is it important to appoint a conveyancing solicitor local to us?
- My Nationwide Building Society mortgage we jointly entered into with ex, who has agreed to be removed and let me have the property. Nationwide Building Society have consented to the transfer of equity to my individual name. Will Nationwide Building Society write my boss to verify my salary?
Information that may be required from your conveyancing solicitor could ask in relation to your Nationwide Building Society Transfer of Equity
Have you approached Nationwide Building Society to seek consent to the Transfer of Equity
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please list all persons who occupy the property, their respective ages and relationships to you.
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Information to consider in further to 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
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger 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 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 varies based on the market value 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 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 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 contained within 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.