Examples of recent questions relating to Nationwide Building Society transfer of equity
- Is it sensible to stop my mortgage payments with Nationwide Building Society as soon as a date for my remortgage and transfer of equity has been set?
- As things stand I have a joint Nationwide Building Society mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is approx 300k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty payable?
- Nationwide Building Society yesterday agreed I can take over the mortgage on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- Have recently separated from my wife of thirty years. I'm now back with my parents again and she wishes to remain in the flat and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the Nationwide Building Society home loan? I assume proper valuations are required but I would like to be confident that I'm getting the best deal
- My brother and I got a joint mortgage with Nationwide Building Society on a apartment in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Is there likely to be any issue with Nationwide Building Society with him being responsible for the total mortgage as opposed to only part of it?
- Last year purchased a flat without my wife's name on the title documents. My lawyer advised it is because she is not in the loan offer with Nationwide Building Society. Is it possible for me to add her name on the title?
- At what stage do I pay the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place simultaneously with a remortgage with Nationwide Building Society?
Examples of information requested in a lawyer questionnaire concerning a Nationwide Building Society Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Please list all persons who occupy the property, their respective ages and relationships to you.
Has consent been obtained from Nationwide Building Society to the proposed transfer of equity?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and specify the amount?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in in addition to the above Nationwide Building Society transfer of equity Advice :
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 properties
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. 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.
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 conveyancing solicitor 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Nationwide Building Society.
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.