Nottingham Building Society transfer of equity: q and a’s

• What is the process for having a person removed off the deeds to a property where the home loan is with Nottingham Building Society
• As things stand I have a joint Nottingham Building Society mortgage with my brother and am investigating the possibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is about 200k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax payable?
• My former wife are looking to get a conveyancing solicitor in place for a remortgage with Nottingham Building Society. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over UK. Do we need to appoint a conveyancing solicitor local to us?
• Two years ago I bought a house without my partner's name on the title. My conveyancing solicitor advised it is due to the fact that she was not in the loan offer with Nottingham Building Society. I'm wondering is there any way that I can add her name on the deeds?
• I co-own a house in Winchelsea , with a Nottingham Building Society mortgage with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from Nottingham Building Society to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Nottingham Building Society (apparently). Can we deal with the Land Registry formalities?
• Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with Nottingham Building Society?
• My existing mortgage is with Nottingham Building Society. Can I transfer equity to someone who is not yet 18 years old?

Examples of information requested in a conveyancing solicitor questionnaire concerning a Nottingham Building Society Transfer of Equity

Caveats to be read in supplemental the above Nottingham Building Society transfer of equity Advice :

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

If your property is leasehold, 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 terms are not adhered to 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 as a result of 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 is dependent on the market value of the property at the time of completion 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 conveyancer 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 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.