Nationwide Building Society transfer of equity example support desk enquires
- As things stand I have a joint Nationwide Building Society mortgage with my cousin and am investigating the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase somewhere with my partner. The remaining mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
- Me and my former wife and I are are looking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Nationwide Building Society. I I am fearful of being overcharged and there are various conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
- I own a flat in Sedgefield
, with a Nationwide Building Society mortgage with my ex husband. He and his new partner are going to buy me out. We had consent from Nationwide Building Society to substitute my name with hers. The transfer of equity has to be done by a conveyancer for Nationwide Building Society (apparently). In order to save fees can I do the Land Registry formalities?
- When it comes to transfer of equity conveyancing involving refinance with Nationwide Building Society should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I got divorced four years ago. For some reason I never dealt with the change the 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 property and loan in my name (affordability checks done). Does she need any legal representation?
- Two years ago I purchased a house without my partner's name on the ownership paperwork. My conveyancer advised it is because she is not in the mortgage with Nationwide Building Society. Is it possible for me to add her name on the title?
- My mortgage broker has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Nationwide Building Society - won’t it be advisable to just instruct them?
Information that may be required from your conveyancer is likely to ask in relation to your Nationwide Building Society Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Who will be responsible for the costs of the Transfer of Equity?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Caveats to be read in supplemental the above Nationwide Building Society transfer of equity information :
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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under 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 varies based on the valuation of the property at the conclusion 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 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 conveyancer 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.