Common questions relating to Nottingham Building Society transfer of equity
- As things stand I have a joint Nottingham Building Society mortgage with my step-brother and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is in the region 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
- My partner and I co-own a house in Ampthill . Mortgage is with Nottingham Building Society. I wish to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be simple?
- Been looking at online forums that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with Nottingham Building Society
- My financial adviser has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Nottingham Building Society - won’t it be better to just instruct them?
- I am disposing of my equity in house in Hendon to the other co-owners fiance, they are sticking with Nottingham Building Society being the the existing mortgage company. We are haggling as to who should pay the legal bill for the transfer of equity. Is this normally shared or is one party liable for the fees for?
- My current home loan is with Nottingham Building Society. Can I transfer equity to someone less than 18 years old?
- I own a flat in Blaenavon
, with a Nottingham Building Society loan with my ex husband. Him and his fiance are going to buy me out. We had the go ahead from Nottingham Building Society to replace my name with hers. The transfer of equity has to be completed by a conveyancer for Nottingham Building Society (supposedly). Is it possible for us to do the Land Registry change?
Questions that your conveyancing solicitor may ask regarding your Nottingham Building Society Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Who will be responsible for the costs of the Transfer of Equity?
Have you approached Nottingham Building Society to seek consent to the Transfer of Equity
Please provide the details of anyone to be added to the title deeds?
Please provide a copy of your National Insurance Number?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Caveats to be read in conjunction with the above Nottingham Building Society transfer of equity Advice :
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 properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Nottingham Building Society your property may be repossessed.
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 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.