Common questions relating to Nedbank transfer of equity
- Am I best advised stop the direct debit for my mortgage with Nedbank once a date for my remortgage and transfer of equity has been set?
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Nedbank - and have been quoted £250 including VAT by Nedbank's appointed conveyancer, Have I been over quoted?
- Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously switching mortgage with Nedbank
- I am in the process of removing a name from a joint mortgage and the Nedbank require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Miles Platting
conveyancing solicitor to deal with the transfer of equity? They need to be on the Nedbank conveyancing panel.
- I am completing a Nedbank transfer of equity request and have come to the section that asks about debts etc. I do some debts that I have been paying off since 2008, I understand that they no longer remain my credit records. Am I obliged to disclose these?
- I acquired a property with a friend five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the Nedbank mortgage. There is a meaningful difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
- My father died half a year ago leaving a unencumbered property to me and my half brother in equal shared. Having continues to reside at the house, there was a clause in the will saying the premisescould not be sold for 2 years following her passing so he could continue to live there for a prescribed period. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my share?
Examples of information requested in a conveyancer questionnaire relating to Nedbank Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be removed from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
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 what figure
Please provide the details of anyone to be added to the title deeds?
Caveats to be read in further to the above Nedbank transfer of equity Questions and Answers :
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 premises
If your property is leasehold, the lease may require 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 potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 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 market value of the property at finalisation of the transfer of equity conveyancing.
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 conveyancing solicitor 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 conveyancing solicitor 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.