Norwich and Peterborough Building Society transfer of equity: q and a’s
- I got divorced in 2012. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Norwich and Peterborough Building Society is happy to transfer the property and loan in my name (affordability checks done). Does my ex need any legal representation?
- Is it sensible to stop my mortgage payments with Norwich and Peterborough Building Society once a date for my remortgage and transfer of equity has been agreed?
- Is it possible to apply to request a further advance from Norwich and Peterborough Building Society as part of a Transfer of Equity?
- I own a flat in Winchelsea
, with a Norwich and Peterborough Building Society loan with my former partner. He and his fiance are going to acquire my share. We had consent from Norwich and Peterborough Building Society to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Norwich and Peterborough Building Society (apparently). Can we deal with the Land Registry formalities?
- Can I transfer the equity held in my property with my Norwich and Peterborough Building Society mortgage?
- My Norwich and Peterborough Building Society mortgage is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. Norwich and Peterborough Building Society will permit the transfer of equity to my individual name. Do Norwich and Peterborough Building Society get in touch with my employer to confirm my salary?
- I plan to remortgage my flat in Rye
moving from Leeds Building Society to Norwich and Peterborough Building Society. The flat is currently in joint names but intend for it to be in my sole name when I remortgage. My former partner is OK with this and is willing to transfer equity but neither of us want to incur conveyancing solicitor charges.
Questions that your conveyancer is likely to ask regarding your Norwich and Peterborough Building Society Transfer of Equity
Can you give the name(s) and addresse(s) of anyone who jointly owns the property with you?
If 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” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
If 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?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in in addition to the above Norwich and Peterborough Building Society 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 Norwich and Peterborough Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under 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 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 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 market value of the property at the time of completion 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.
Content 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.