Frequently asked questions relating to Nationwide Building Society transfer of equity

• I am looking for a conveyancing solicitor to handle my transfer of equity. Nationwide Building Society are dealing with the remortgage. I considered asking my financial adviser. I understand he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
• Is it possible to transfer the equity held in my property with my Nationwide Building Society home loan?
• My father died early last year leaving a unencumbered bungalow to me and my half brother 50:50. He has always lived in the property, there was a provision in the will specifying that the premisescould not be sold for 24 months after her death so he could continue to live there for a while. He now says he would like to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to buy my share?
• I already have a mortgage with Nationwide Building Society and am keeping my existing mortgaging but seeking to have it in my name alone so my former partner won't be on it any longer. How long do Nationwide Building Society take to process the application?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• My Nationwide Building Society home loan is in joint names with ex, who is agreeable to be removed and let me have the property. Nationwide Building Society have consented to the transfer of equity to my individual name. Will Nationwide Building Society write my employer to confirm my salary?
• I am completing a Nationwide Building Society transfer of equity application and have come to the part that asks about debts etc. There are some debts that I have been paying off over a long period, I understand that they have long since disappeared from my credit rating. Must I declare these?

Sample of information requested in a lawyer questionnaire relating to Nationwide Building Society Transfer of Equity

General Advice to read in supplemental the above Nationwide 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 Nationwide Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed 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 Nationwide 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 Nationwide 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 conveyancing.

Preparing the Transfer of Equity with a Nationwide Building Society Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Nationwide 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.