Recently asked questions relating to Nationwide Building Society transfer of equity

• As things stand I have a joint Nationwide Building Society mortgage with my cousin and am investigating the option of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?
• My current mortgage is with Nationwide Building Society. Can I transfer equity to someone less than 18 years old?
• My former wife are seeking to get a conveyancer lined up for a refinance with Nationwide Building Society. Transfer of Equity conveyancing is also neededI have used the different comparison based tools and the results are from all over UK. How necessary is it to appoint a conveyancer local to us?
• 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) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• What if my application doesn't meet Nationwide Building Society lending criteria for a transfer of equity?
• What is the process for having a person removed from the title documents to a property where the mortgage is with Nationwide Building Society
• I am planning on removing a name from a joint mortgage and the Nationwide Building Society require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Miles Platting lawyer to deal with the transfer of equity? They need to be on the Nationwide Building Society conveyancing panel.

Questions that your lawyer is likely to ask about your Nationwide Building Society Transfer of Equity

Caveats to be read in conjunction with the above Nationwide Building Society transfer of equity Advice :

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 have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach 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 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 finalisation of the transfer of equity transaction.

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 conveyancing solicitor 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 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.