Recently asked questions relating to Norwich and Peterborough Building Society transfer of equity
- I am transferring my equity in property in Birmingham to the other co-owners husband, they are sticking with Norwich and Peterborough Building Society as the the existing lender. We are in heated discussion as to who must pay the fees for the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
- I am answering a Norwich and Peterborough Building Society transfer of equity form and have arrived at the questions regarding debts etc. I do some debts that I have been reducing over a long period, I understand that they have long since disappeared from my credit rating. Am I obliged to set these out?
- In 2012 I purchased a property without my fiance’s name on the title documents. My conveyancer advised it is due to the fact that she is not in the mortgage with Norwich and Peterborough Building Society. I'm wondering is there any way that I can put her name on the title?
- My partner and I jointly own a flat in Crabtree
. Mortgage is with Norwich and Peterborough Building Society. I wish to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be simple?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- Will I incur any charges for a Transfer of Equity where the existing mortgage is with Norwich and Peterborough Building Society?
- I plan to remortgage my flat in Timperley
changing from Yorkshire Bank Home Loans to Norwich and Peterborough Building Society. The home is currently in joint names but propose for it to be in my sole name once I switch. My husband is OK with this and is happy to sign a form but neither of us want to get a second conveyancer involved.
Sample of information requested in a conveyancer form concerning a Norwich and Peterborough Building Society Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
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?
Who will be responsible for the costs of the Transfer of Equity?
Please clarify if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Important warnings to consider in in addition to 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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.
Indemnity Insurance
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 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.
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 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 should not be regarded as 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.
