National Counties Building Society transfer of equity: q and a’s

• I got divorced four years ago. I simply never dealt with the change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. National Counties Building Society is willing to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
• At what point do I cover the costs of stamp duty payable for the transfer of equity in my house in my name alone which is taking place simultaneously with a refinancing via National Counties Building Society?
• National Counties Building Society have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
• I recently purchased a flat without my partner's name on the ownership paperwork. My conveyancing solicitor claimed it is due to the fact that she is not in the mortgage with National Counties Building Society. Is it possible for me to add her name on the documents at HM Land Registry?
• My current home loan is with National Counties Building Society. Can I transfer equity to someone under eighteen years old?
• I am trying to find a lawyer to undertake my transfer of equity. National Counties Building Society have been approached for a refinancing. I thought of asking my mortgage broker. I understand he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Is my logic correct?
• I plan to remortgage my maisonette in Sedgefield switching from Leeds Building Society to National Counties Building Society. The home is currently in joint names but propose for it to be in my sole name once I remortgage. My husband has agreed to this and is willing to transfer equity but neither of us want to incur conveyancer charges.

Examples of information requested in a lawyer form concerning a National Counties Building Society Transfer of Equity

Caveats to be read in supplemental the above National Counties Building Society transfer of equity Questions and Answers :

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 National Counties 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 freeholder. If such conditions are not strictly observed you may be in violation 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 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 National Counties 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 National Counties 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a National Counties 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 National Counties 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 lawyer 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.