Frequently asked questions relating to Nedbank transfer of equity
- What are the average solicitors charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Nedbank - and have been quoted Three Hundred pounds plus VAT by Nedbank's appointed conveyancer, Is this a reasonable price?
- My former husband are seeking to get a lawyer lined up for a remortgage with Nedbank. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over the country. How necessary is it to have a conveyancing solicitor local to us?
- I am answering a Nedbank transfer of equity form and have come to the section that asks about defaults etc. I do some debts that I have been discharging for a number of years, in fact they no longer remain my credit score. Do I need to set these out?
- My partner and I have equal shares in a investment property. I am a top rate tax payer. Preferably I would like to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. If Nedbank are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- Is there such a thing a transfer of equity stamp duty calculator?
- I am looking for a conveyancing solicitor to undertake my transfer of equity. Nedbank have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he will likely receive a kickback for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- Is it possible to apply to borrow more money from Nedbank as part of a Transfer of Equity?
Sample of questions in a conveyancer questionnaire relating to Nedbank Transfer of Equity
Has consent been obtained from Nedbank to the proposed transfer of equity?
Please provide the details of anyone to be extracted from the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Is the transfer of equity subject to a court order? If yes please supply a copy
Caveats to be read in supplemental 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 titles
If your property is leasehold, the lease may require that you have a license to do so from the landlord. 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.
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 finalisation of the transfer of equity transaction.
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 lawyer 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 provided 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.