Norwich and Peterborough Building Society transfer of equity: q and a’s
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- I already have a home loan with Norwich and Peterborough Building Society and am keeping my existing mortgaging but applying to have it in my name only so my former wife won't be on it any longer. How long does the whole transfer of equity process take?
- I am considering remortgaging my apartment in Romsey
does my lawyer need to be on the Norwich and Peterborough Building Society Solicitor panel. The conveyancing also involves a transfer of equity.
- Me and a friend got a joint mortgage with Norwich and Peterborough Building Society on a flat in 2013. I am now looking to get a apartment by myself and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential issue with Norwich and Peterborough Building Society with him being solely liable for the total mortgage as opposed to only half of it?
- I bought a flat with my brother in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name comes off the Norwich and Peterborough Building Society mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Our mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with Norwich and Peterborough Building Society - Is it not simpler easier to just use them?
- I am completing a Norwich and Peterborough Building Society transfer of equity request and have arrived at the questions that asks about debts etc. I do some debts that I have been reducing for a number of years, I understand that they have long since disappeared from my credit score. Must I set these out?
Information that may be required from your conveyancer may ask regarding your Norwich and Peterborough Building Society Transfer of Equity
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?
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 what figure
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supplemental the above Norwich and Peterborough Building Society 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 Norwich and Peterborough Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is 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 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 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 market value of the property at the conclusion of the transfer of equity conveyancing.
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 conveyancer 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.