Recently asked questions relating to Norwich and Peterborough Building Society transfer of equity
- As things stand I have a joint Norwich and Peterborough Building Society mortgage with my step-brother and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is about 450k. Is this a transfer of equity? Is stamp duty involved?
- My father passed away seven months ago leaving a unencumbered bungalow to me and my half brother 50:50. He has always lived in the house, there was a clause in the will specifying that the premisescould not be sold for 24 months after her death so he could reside there for a while. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to purchase my half from me?
- I am in the process of remortgaging my home in Crabtree
does my lawyer have to be on the Norwich and Peterborough Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
- Me and my partner jointly own a flat in Ampthill . Home loan is with Norwich and Peterborough Building Society. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be straightforward?
- I already have a mortgage with Norwich and Peterborough Building Society and am keeping my existing mortgaging but wish to have it in my sole name so my former husband will be removed from the deeds. How long does the whole transfer of equity process take?
- The financial adviser has recommended their lawyer for our Transfer of Equity plus remortgage with Norwich and Peterborough Building Society - Surely it’s advisable to just instruct them?
- My ex are seeking to get a conveyancing solicitor in place for a refinance with Norwich and Peterborough Building Society. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over the country. Do we need to appoint a conveyancer local to us?
Questions that your lawyer may ask in relation to your Norwich and Peterborough Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Has consent been obtained from Norwich and Peterborough Building Society to the proposed transfer of equity?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Caveats to be read in in addition to the above Norwich and Peterborough Building Society transfer of equity Advice :
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 Norwich and Peterborough Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. 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 pursuant to 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 lawyer will check with Norwich and Peterborough Building Society 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 Norwich and Peterborough Building Society 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 transaction.
If you do not keep up the payments on your mortgage with Norwich and Peterborough Building Society your property may be repossessed.
Preparing the Transfer of Equity with a Norwich and Peterborough Building Society 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 Norwich and Peterborough Building Society 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 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.