Frequently asked questions relating to Norwich and Peterborough Building Society transfer of equity
- At what point do I pay the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is happening simultaneously with a remortgage via Norwich and Peterborough Building Society?
- I own a house in Heathfield
, with a Norwich and Peterborough Building Society loan with my ex husband. Him and his fiance are going to acquire my share. We had approval from Norwich and Peterborough Building Society to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for Norwich and Peterborough Building Society (supposedly). In order to save fees can I deal with the Land Registry change?
- Norwich and Peterborough Building Society have today agreed I can take over the home loan on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
- After three years apart I have opted to transfer my interest in our property to my husband who is refinancing with Norwich and Peterborough Building Society. Can a transfer of equity be done within 28 days?
- Is it sensible to stop the direct debit for my mortgage with Norwich and Peterborough Building Society as soon as a date for my remortgage and transfer of equity has been set?
- I am selling my share of a flat in Birmingham to the other co-owners fiance, they are reapplying to Norwich and Peterborough Building Society. We are debating as to who must cover the costs of the transfer of equity. Should this be split or is one party liable for the costs of?
- Is stamp duty payable when it comes to an transfer of equity with a mortgage with Norwich and Peterborough Building Society?
Examples of information requested in a conveyancing solicitor questionnaire relating to Norwich and Peterborough Building Society Transfer of Equity
Please give the details of anyone to be removed from the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Is the transfer of equity subject to a court order? If yes please supply a copy
Who will be responsible for the costs of the Transfer of Equity?
Please clarify where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in conjunction with 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 premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 conveyancer 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 finalisation of the transfer of equity transaction.
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 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 conveyancing solicitor 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 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.