Frequently asked questions relating to Nottingham Building Society transfer of equity

• What are my options where I am not happy with the conveyancing solicitor who handled our transfer of equity transaction?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Nottingham Building Society mortgage account?
• Having been 3 years separated I have opted to give up my share of our apartment to my husband who is re-mortgaging with Nottingham Building Society. Could this transfer of equity be done in less than 28 days?
• Me and a friend got a joint mortgage with Nottingham Building Society on a property a couple of years ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Is there likely to be any concerns with Nottingham Building Society with him being solely liable for the total loan as opposed to only part of it?
• Can I apply to request more money from Nottingham Building Society as part of a Transfer of Equity?
• The financial adviser has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Nottingham Building Society - won’t it be better to just use them?
• Have recently split up with my partner of twenty years. I'm now back with my mum and dad and she wishes to stay in the apartment and pay me off. What portion do I get. Is it half of the equity after redeeming the Nottingham Building Society home loan? I assume proper valuations are required but I really need to be confident that I'm getting what I am entitled to

Sample of information requested in a conveyancer form concerning a Nottingham Building Society Transfer of Equity

Information to consider in further to the above Nottingham Building Society transfer of equity information :

Tax and Legal

There may be various 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 titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 situations, 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 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 market value of the property at the conclusion 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 conveyancing solicitor 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 conveyancing solicitor 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.