Questions and answers: Norwich and Peterborough Building Society transfer of equity

• Law month I separated from my partner of thirty years. I'm now back with my mum and dad and she wants to remain in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the mortgage with Norwich and Peterborough Building Society? I assume proper valuations are necessary but I would like to be sure that I'm getting the best deal
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• Is it possible to apply to borrow more money from Norwich and Peterborough Building Society as part of a Transfer of Equity?
• Our mortgage broker has suggested using their lawyer for my Transfer of Equity plus remortgage with Norwich and Peterborough Building Society - Is it not simpler better to just instruct them?
• Three years ago I purchased a property without my wife's name on the deeds. My lawyer advised it is due to the fact that she is not in the loan offer with Norwich and Peterborough Building Society. I'm wondering is there any way that I can put her name on the title?
• My Norwich and Peterborough Building Society mortgage we jointly entered into with ex, he is agreeable to come off the mortgage and put the house in my name alone. Norwich and Peterborough Building Society have consented to the transfer of equity to my individual name. Do Norwich and Peterborough Building Society call my boss to confirm my salary?
• I am disposing of my share of a flat in Birmingham to the other co-owners fiance, they are reapplying to Norwich and Peterborough Building Society. We are debating as to who must cover the legal bill for the transfer of equity. Is this normally shared or is one party liable for the fees for?

Sample of questions in a conveyancer form relating to Norwich and Peterborough Building Society Transfer of Equity

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

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 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 Norwich and Peterborough 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 Norwich and Peterborough 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Norwich and Peterborough Building Society 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 Norwich and Peterborough 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 contained within 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.