Frequently asked questions relating to Norwich and Peterborough Building Society transfer of equity
- My mother died last May leaving a mortgage-free semi to me and my step brother 50:50. Having continues to reside at the premises, there was a clause in the will specifying that the housecould not be sold for 24 months following her passing so he could reside there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to acquire my share?
- I am transferring my equity in property in Birmingham to my co-owners fiance, they are sticking with Norwich and Peterborough Building Society as the the existing lender. We are debating as to who should pay the legal bill for the transfer of equity. Is this normally split or is one party liable for the fees for?
- I bought a property with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Norwich and Peterborough Building Society mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I got divorced two years ago. Foolishly I never got around to change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Norwich and Peterborough Building Society is content to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
- I plan to remortgage my apartment in Romsey
moving from Santander to Norwich and Peterborough Building Society. The home is jointly owned but I would like it to be in my name only once I switch. My wife is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- As things stand I have a joint Norwich and Peterborough Building Society mortgage with my step-brother and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a property with my soon-to-be-wife. The outstanding mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
- My Norwich and Peterborough Building Society home loan is in joint names with ex, he has agreed to be removed and let me have the property. Norwich and Peterborough Building Society will permit the transfer of equity to my individual name. Do Norwich and Peterborough Building Society get in touch with my employer to check my salary?
Examples of questions in a conveyancer questionnaire concerning a Norwich and Peterborough Building Society Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Has one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Information to consider in conjunction with the above Norwich and Peterborough Building Society 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 Norwich and Peterborough Building Society conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, 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 violation of your covenants under the lease. This could potentially result in 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 lawyer 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Norwich and Peterborough Building Society your property may be repossessed.
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 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.
