Top seven questions relating to Nationwide Building Society transfer of equity
- I currently have a joint Nationwide Building Society mortgage with my cousin and am investigating the possibility of him taking on the whole mortgage and extracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is in the region 200k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
- I am planning on removing a name from a joint mortgage and the Nationwide Building Society require me to use a conveyancer 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.
- I co-own a house in Littleborough
, with a Nationwide Building Society mortgage with my former husband. Him and his new partner are going to buy me out. We had the go ahead from Nationwide Building Society to replace my name with hers. The transfer of equity has to be completed by a lawyer for Nationwide Building Society (supposedly). Is it possible for us to do the Land Registry change?
- My brother and I got a joint mortgage with Nationwide Building Society on a house about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Would there be any potential issue with Nationwide Building Society with him being responsible for the total mortgage rather than only half of it?
- I am transferring my share of a flat in Birmingham to the other co-owners fiance, they are sticking with Nationwide Building Society being the the existing mortgage company. We are haggling as to who should pay the fees for the transfer of equity. Is this normally shared or is one party liable for the charges for?
- I plan to refinance my flat in Sedgefield
switching from HSBC to Nationwide Building Society. The home is currently in joint names but propose for it to be in my name only as and when I transfer. My husband has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- My partner and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If Nationwide Building Society are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
Information that may be required from your conveyancer may ask in relation to your Nationwide Building Society Transfer of Equity
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Where you 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?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Have you approached Nationwide Building Society to obtain consent to the Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
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?
Information to consider in in addition to 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
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under 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 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 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 market value of the property at finalisation 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 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.
