Frequently asked questions relating to National Westminster Bank transfer of equity

• What legal advice do I need when doing a transfer of equity where the home loan is to remain with National Westminster Bank?
• I intend to refinance my home in Wakefield moving from HSBC to National Westminster Bank. The home is currently in joint names but wish for it to be in my name only once I switch. My wife has agreed to this and is happy to transfer equity but neither of us want to incur conveyancer charges.
• At what point do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my name alone which is happening at the same time as a switching mortgage with National Westminster Bank?
• Me and a friend got a joint mortgage with National Westminster Bank on a property in 2013. I am now thinking of buying a house on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Is there likely to be any issue with National Westminster Bank with him being responsible for the total loan as opposed to only part of it?
• Is it possible to transfer the equity held in my property with my National Westminster Bank mortgage?
• What do I do if I am dissatisfied with the conveyancing solicitor who carried out our transfer of equity conveyancing?
• My fiance and myself equally own a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If National Westminster Bank are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.

Information that may be required from your lawyer could ask about your National Westminster Bank Transfer of Equity

Caveats to be read in conjunction with the above National Westminster Bank 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 National Westminster Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 conveyancer will check with National Westminster Bank 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 Westminster Bank 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 National Westminster Bank 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 National Westminster Bank 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.