Frequently asked questions relating to Nedbank transfer of equity
- Me and my former wife and I are searching for an affordable 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 firms who do transfer of equity conveyancing to pick from...who do I opt for?
- I am transferring my share of a apartment in Birmingham to the other co-owners fiance, they are reapplying to Nedbank. We are in heated discussion as to who must cover the costs of the transfer of equity. Is this normally shared or is one party obliged to cover the costs of?
- I am answering a Nedbank transfer of equity request and have arrived at the questions that asks about debts etc. There are some debts that I have been clearing since 2008, I understand that they have long since disappeared from my credit score. Do I need to reveal these?
- My Nedbank mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Nedbank will permit the transfer of equity to me solely. Do Nedbank write my employer to check my salary?
- How and when do I pay stamp duty chargeable for the transfer of equity in my house in my name alone which is happening at the same time as a switching mortgage with Nedbank?
- I currently have a joint Nedbank mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
- I acquired a flat with my cousin six years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Nedbank mortgage. There is a meaningful difference between the value the Nedbank hold and what the property would sell for currently. Can you offer any advice?
Examples of information requested in a conveyancing solicitor questionnaire concerning a Nedbank Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you 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 list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Information to consider in in addition to the above Nedbank transfer of equity Info :
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
If your property is leasehold, the lease may have a requirement for notices to be served and 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 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 valuation of the property at finalisation 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 conveyancing solicitor 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.