Norwich and Peterborough Building Society transfer of equity: q and a’s
- Been looking at online blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with Norwich and Peterborough Building Society
- I am planning on removing a name from a joint mortgage and the Norwich and Peterborough Building Society need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the Norwich and Peterborough Building Society conveyancing panel.
- Will I incur any charges for a Transfer of Equity where the current mortgage is with Norwich and Peterborough Building Society?
- I currently have a joint Norwich and Peterborough Building Society mortgage with my cousin and am investigating the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to purchase a place with my soon-to-be-wife. The remaining mortgage is approx 300k, and the property value is about 450k. Is this a transfer of equity? Is land tax involved?
- I plan to remortgage my apartment in Winchelsea
moving from Virgin Money to Norwich and Peterborough Building Society. The flat is jointly owned but wish for it to be in my name only when I switch. My wife is OK with this and is happy to sign a form but neither of us want to incur conveyancing solicitor charges.
- My father passed away early last year leaving a unencumbered house to me and my half brother equally. He has always lived in the property, there was a condition in her will saying the premisescould not be sold for 2 years after her passing so he could remain there for a specified time frame. He now wants to remain in the house beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my equity?
- I am filling out a Norwich and Peterborough Building Society transfer of equity application and have come to the section that asks about defaults etc. There are some debts that I have been discharging for a number of years, in fact they have long since disappeared from my credit rating. Am I obliged to declare these?
Examples of questions in a conveyancer questionnaire concerning a Norwich and Peterborough Building Society Transfer of Equity
Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
General Advice to read in supporting the above Norwich and Peterborough Building Society transfer of equity Info :
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 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 strictly observed you may be in violation of the lease. This could trigger 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 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 valuation of the property at the time of completion 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 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 conveyancer 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.