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Are you in need of a Transfer of Equity with a Nedbank Private Wealth Ltd mortgage? Failing to check that a lawyer is on the Nedbank Private Wealth Ltd list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Nedbank transfer of equity: q and a’s

  • My existing home loan is with Nedbank. Can I transfer equity to someone under 18 years old?
  • I am answering a Nedbank transfer of equity application and have come to the part regarding debts etc. There are some debts that I have been paying off for a number of years, I understand that they no longer remain my credit records. Am I obliged to disclose these?
  • As things stand I have a joint Nedbank mortgage with my cousin and am investigating the option of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is about 300k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
  • I am transferring my equity in house in Hendon to the other co-owners husband, they are sticking with Nedbank as the the existing mortgage company. We are haggling as to who should pay the costs of the transfer of equity. Is this normally split or is one of us obliged to cover the charges for?
  • My divorce is through as is the consent order. Now I have to address the transfer of equity at the HMLR and the Nedbank home loan. I have contacted Nedbank for the transfer of equity application. What are my next steps?
  • Do I need legal advice when doing a transfer of equity where the home loan is to remain with Nedbank?
  • My friend and I got a joint mortgage with Nedbank on a house a couple of years ago. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any issue with Nedbank with him being solely liable for the total mortgage as opposed to only part of it?

Questions that your lawyer could ask about your Nedbank Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Have you approached Nedbank to seek consent to the Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

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

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Information to consider in supporting the above Nedbank transfer of equity information :

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 titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 cases, 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 conveyancer 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 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 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.


Frequently asked questions relating to Nedbank transfer of equity