Common questions relating to Lloyds TSB Scotland transfer of equity
- I am considering mortgaging my property in Heathfield
does my lawyer have to be on the Lloyds TSB Scotland Solicitor panel. The conveyancing also involves a transfer of equity.
- Law month I separated from my ex of thirty years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the Lloyds TSB Scotland home loan? I assume proper valuations are required but I would like to be confident that I'm getting the best deal
- My father died seven months ago leaving a loan-free semi to me and my half brother equally. He has always lived in the house, there was a condition in her will saying the housecould not be sold for 2 years following her passing so he could remain there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the usual way to buy my half from me?
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Lloyds TSB Scotland?
- My ex are planning to get a conveyancing solicitor in place for a new mortgage with Lloyds TSB Scotland. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over England and Wales. Is it important to have a conveyancer local to us?
- I am selling my equity in property in Hendon to my co-owners husband, they are reapplying to Lloyds TSB Scotland. We are debating as to who should cover the charges for the transfer of equity. Should this be shared or is one of us obliged to cover the charges for?
- I got divorced three years ago. I simply never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. Lloyds TSB Scotland is willing to transfer the full equity in my name (financial checks done). Does she need any legal representation?
Examples of questions in a lawyer questionnaire relating to Lloyds TSB Scotland Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Has consent been obtained from Lloyds TSB Scotland to the proposed transfer of equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the details of anyone who jointly owns the property with you?
Is it the case that one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Information to consider in in addition to the above Lloyds TSB Scotland transfer of equity Questions and Answers :
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 Lloyds TSB Scotland conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 conveyancing solicitor will check with Lloyds TSB Scotland 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 Lloyds TSB Scotland 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.
If you do not keep up the payments on your mortgage with Lloyds TSB Scotland your property may be repossessed.
Preparing the Transfer of Equity with a Lloyds TSB Scotland 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 Lloyds TSB Scotland 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.
Content 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.