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Recently asked questions relating to Nedbank transfer of equity

  • I am completing a Nedbank transfer of equity form and have arrived at the questions regarding debts etc. There are some debts that I have been reducing since 2008, I understand that they have long since disappeared from my credit records. Do I need to set these out?
  • I understand we would need at least AP1 and TR1. Is this true?
  • I recently bought a property without my fiance’s name on the title. My conveyancing solicitor advised it is because she was not in the loan offer with Nedbank. Is it possible for me to put her name on the documents at HM Land Registry?
  • What can I do where I am not happy with the conveyancer who undertook my transfer of equity transaction?
  • My partner and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on the letting income. If Nedbank are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and remortgage - new loan with Nedbank - and have been quoted £350 including VAT by Nedbank's approved lawyer, Have I been over quoted?
  • I own a flat in Timperley , with a Nedbank mortgage with my ex husband. He and his new partner are going to acquire my share. We had approval from Nedbank to substitute my name with hers. The transfer of equity needs to be done by a lawyer for Nedbank (apparently). Is it possible for us to deal with the Land Registry change?

Information that may be required from your conveyancer could ask in relation to your Nedbank Transfer of Equity

Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Have you approached Nedbank to obtain consent to the Transfer of Equity

Please give the details of anyone who jointly owns the property with you?

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)

Caveats to be read in conjunction with the above Nedbank 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 Nedbank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with 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 Nedbank 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 Nedbank 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 is dependent on the valuation 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 Nedbank.

Preparing the Transfer of Equity with a Nedbank 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 Nedbank 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.

Information contained within 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.


Frequently asked questions relating to Nedbank transfer of equity