Nedbank transfer of equity example support desk enquires

• Me and my former fiance and I are are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with Nedbank. I want to avoid being ripped off but with various conveyancing solicitors who do transfer of equity conveyancing to choose from...who's the best?
• My mum passed away early last year leaving a unencumbered bungalow to me and my step brother equally. He has always lived in the house, there was a provision in her will specifying that the housecould not be sold for three years after her death so he could remain there for a prescribed period. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the conventional way to acquire my share?
• I already have a mortgage with Nedbank and am retaining my current mortgaging but applying to have have the equity transferred to my sole name so my ex won't be on it any longer. How long can it take for the forms to be processed?
• I recently bought a house without my partner's name on the deeds. My lawyer advised it is due to the fact that she is not in the loan offer with Nedbank. Is it possible for me to add her name on the documents at HM Land Registry?
• The financial adviser has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Nedbank - Surely it’s better to just instruct them?
• My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity on title deeds and the Nedbank mortgage. I have contacted Nedbank for the transfer of equity forms. What happens next?
• What are the average conveyancing charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Nedbank - and have been quoted £250 including VAT by Nedbank's approved lawyer, Have I been over quoted?

Questions that your lawyer may ask regarding your Nedbank Transfer of Equity

Important warnings to consider in further to the above Nedbank transfer of equity Advice :

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 properties

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with 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 as a result of 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 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 valuation of the property at the time of completion 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 lawyer 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 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 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.