Top seven 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 brother and am investigating the possibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my partner. The outstanding mortgage is approx 250k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty involved?
- Is it possible to apply to request more money from Norwich and Peterborough Building Society as part of a Transfer of Equity?
- My Norwich and Peterborough Building Society home loan we jointly entered into with ex, he is agreeable to come off the deeds and let me have the property. Norwich and Peterborough Building Society will permit the transfer of equity to me solely. Do Norwich and Peterborough Building Society get in touch with my boss to check my salary?
- Is it possible to transfer the equity held in my property with my Norwich and Peterborough Building Society mortgage?
- My existing home loan is with Norwich and Peterborough Building Society. Can I transfer equity to someone less than 18 years old?
- I intend to remortgage my apartment in Miles Platting
changing from Yorkshire Bank Home Loans to Norwich and Peterborough Building Society. The home is jointly owned but I would like it to be in my name only once I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.
- Been looking at consumer blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and simultaneously remortgaging with Norwich and Peterborough Building Society
Sample of information requested in a conveyancing solicitor questionnaire concerning a Norwich and Peterborough Building Society Transfer of Equity
Would you like us to draw up a Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
General Advice to read in supplemental 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 properties
If your property is 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 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.