Nedbank transfer of equity: q and a’s
- I already have a home loan with Nedbank and am retaining my current mortgaging but seeking to have have the equity transferred to my name alone so my former husband won't be on it any longer. How long does the whole transfer of equity process take?
- My former wife are planning to get a conveyancing solicitor lined up for a new mortgage with Nedbank. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over UK. Is it important to have a conveyancing solicitor local to us?
- I am planning on removing a name from a joint mortgage and the Nedbank require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Heathfield
conveyancing solicitor to deal with the transfer of equity? They need to be on the Nedbank conveyancing panel.
- As things stand I have a joint Nedbank mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is approx 250k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
- My decree absolute is through as is the consent order. Now I must sort out the transfer of equity for the property and the Nedbank mortgage. I have contacted Nedbank for the transfer of equity forms. What are my next steps?
- My fiance and myself jointly own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Nedbank are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Nedbank yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
Information that may be required from your conveyancing solicitor could ask in relation to your Nedbank Transfer of Equity
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
If 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 whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Important warnings to consider in further to 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 premises
Should the tenure of your property be 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 the lease. This could potentially result in 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 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 varies based on the valuation of the property at the conclusion 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 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 lawyer 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.