Questions and answers: Nedbank transfer of equity

• My fiance and I equally own a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order mitigate tax on rental income. If Nedbank are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• How do I go about adding or removing names (transfer of equity) to or from my Nedbank mortgage account?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Nedbank?
• I am am in need of a lawyer to deal with my transfer of equity. Nedbank are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he will likely get a referral fee for suggesting a firm, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
• My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Nedbank home loan. I have asked Nedbank for the transfer of equity forms. What happens next?
• I am planning on removing a name from a joint mortgage and the Nedbank need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet lawyer to deal with the transfer of equity? They need to be on the Nedbank conveyancing panel.
• I am remortgaging my flat in Witham does my lawyer need to be on the Nedbank Solicitor panel. The conveyancing also involves a transfer of equity.

Information that may be required from your lawyer is likely to ask about your Nedbank Transfer of Equity

Information to consider in further to the above Nedbank transfer of equity Info :

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 Nedbank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, 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 pursuant to 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 lawyer will check with Nedbank 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 Nedbank 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Nedbank 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 Nedbank 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.

Information contained within 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.