Questions and answers: Nottingham Building Society transfer of equity

• Law week I split up with my wife of thirty years. I'm now living with my parents again and she wants to remain in the flat and pay me off. What portion am I entitled to. Is it half of the equity after paying off the Nottingham Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
• I am in the process of removing a name from a joint mortgage and the Nottingham Building Society require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Timperley conveyancer to deal with the transfer of equity? They need to be on the Nottingham Building Society conveyancing panel.
• I am answering a Nottingham Building Society transfer of equity form and have come to the questions that asks about debts etc. I do some debts that I have been clearing for a number of years, I understand that they have long since disappeared from my credit records. Do I need to disclose these?
• Me and my partner co-own a house in Winchelsea . Mortgage is with Nottingham Building Society. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be straightforward?
• How do I go about adding or removing names (transfer of equity) to or from my Nottingham Building Society mortgage account?
• I already have a mortgage with Nottingham Building Society and am maintaining my existing mortgaging but wish to have it in my sole name so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• As things stand I have a joint Nottingham Building Society mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is approx 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?

Questions that your conveyancer may ask about your Nottingham Building Society Transfer of Equity

General Advice to read in supporting the above Nottingham Building Society transfer of equity Questions and Answers :

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 Nottingham 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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancing solicitor will check with Nottingham 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 Nottingham 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.

Preparing the Transfer of Equity with a Nottingham 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 Nottingham 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.

Content 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.