Common questions relating to Norwich and Peterborough Building Society transfer of equity
- I purchased a house with my cousin in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Norwich and Peterborough Building Society mortgage. There is a meaningful difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
- Law week I split up with my ex of 18 years. I'm now living with my mum and dad and she wishes to stay in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after redeeming the mortgage with Norwich and Peterborough Building Society? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- The financial adviser has recommended their conveyancer for our Transfer of Equity plus remortgage with Norwich and Peterborough Building Society - won’t it be easier to just use them?
- How much the typical solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Norwich and Peterborough Building Society - and have been quoted £350 excluding VAT by Norwich and Peterborough Building Society's appointed conveyancer, Is this is a good price or not?
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Norwich and Peterborough Building Society?
- I am selling my equity in apartment in Birmingham to my co-owners fiance, they are sticking with Norwich and Peterborough Building Society as the the existing mortgage company. We are haggling as to who should pay the fees for the transfer of equity. Is this usually split or is one party obliged to cover the costs of?
- I currently have a joint Norwich and Peterborough Building Society mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty payable?
Sample of information requested in a lawyer questionnaire concerning a Norwich and Peterborough Building Society Transfer of Equity
Please give the details of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of those who jointly own the property with you?
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?
Caveats to be read in in addition to the above Norwich and Peterborough Building Society transfer of equity Questions and Answers :
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, 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 complied with you may be in violation 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 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Norwich and Peterborough Building Society.
Preparing the Transfer of Equity with a Norwich and Peterborough Building Society 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 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 conveyancing solicitor 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.