Top seven questions relating to Nedbank transfer of equity
- I am in the market for a responsive conveyancing solicitor to assist in a transfer of equity and remortgage with Nedbank. I want to avoid being ripped off and there are so many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
- I purchased a flat with my brother five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Nedbank mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- As things stand I have a joint Nedbank mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a place with my fiance. The outstanding mortgage is approx 250k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
- My mortgage broker has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with Nedbank - Is it not simpler better to just use them?
- How much the typical solicitors costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Nedbank - and have been quoted Four Hundred pounds excluding VAT by Nedbank's appointed lawyer, Have I been over quoted?
- I got my Decree Absolute two years ago. For some reason I never dealt with the transfer ownership from the current 'joint' status to my sole name. I am ready to do that and so is she. Transfer-of-equity is needed. Nedbank is content to transfer the full equity in my name (financial checks done). Does my ex need any legal representation?
- My father passed away early last year leaving a loan-free bungalow to me and my 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 three years after her passing so he could reside there for a specified time frame. He now wants to remain in the property beyond the prescribed 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 usual way to acquire my share?
Sample of information requested in a lawyer questionnaire relating to Nedbank Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
Where you are going to hold 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 list all persons who occupy the property, their respective ages and relationships to you.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of those who jointly own the premises with you?
Information to consider in conjunction with the above Nedbank 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 Nedbank 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 landlord. If such restrictions are not strictly observed 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 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 the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Nedbank your property may be repossessed.
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 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.