Top seven questions relating to Nedbank transfer of equity

• I am planning on removing a name from a joint mortgage and the Nedbank need me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the Nedbank conveyancing panel.
• I already have a home loan with Nedbank and am maintaining my current mortgaging but wish to have have the equity transferred to my name alone so my former husband will no longer be on the mortgage. How long do Nedbank take to deal with the application?
• My divorce is through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Nedbank home loan. I have asked Nedbank for the transfer of equity forms. What do I do now?
• I intend to refinance my home in Dunnington switching from Nationwide to Nedbank. The home is currently in joint names but intend for it to be in my sole name when I transfer. My husband is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my Nedbank mortgage account?
• Is there such a thing a transfer of equity stamp duty calculator?
• My mum passed away seven months ago leaving a unencumbered house to me and my brother 50:50. He has always lived in the house, there was a provision in her will specifying that the propertycould not be sold for 24 months after her passing so he could remain there for a while. He now wishes to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the traditional way to purchase my share?

Sample of information requested in a lawyer form concerning a Nedbank Transfer of Equity

Important warnings to consider in in addition to the above Nedbank transfer of equity information :

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 Nedbank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to 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 conveyancing solicitor 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Nedbank 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 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 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 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.