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Lloyds TSB Scotland

Top seven questions relating to Lloyds TSB Scotland transfer of equity

  • I am transferring my share of a house in Warwick to my co-owners fiance, they are reapplying to Lloyds TSB Scotland. We are haggling as to who should pay the fees for the transfer of equity. Should this be split or is one of us liable for the charges for?
  • My fiance and I jointly own a BTL. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name to mitigate tax on the letting income. If Lloyds TSB Scotland are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • I am in the process of removing a name from a joint mortgage and the Lloyds TSB Scotland require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Crabtree conveyancer to deal with the transfer of equity? They need to be on the Lloyds TSB Scotland conveyancing panel.
  • How do I go about adding or removing names (transfer of equity) to or from my Lloyds TSB Scotland mortgage account?
  • Is it possible to transfer the equity held in my property with my Lloyds TSB Scotland home loan?
  • At what point do I pay stamp duty chargeable for the transfer of equity in my house in my sole name which is taking place at the same time as a remortgage via Lloyds TSB Scotland?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?

Sample of information requested in a conveyancing solicitor questionnaire concerning a Lloyds TSB Scotland Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be added to the property title?

Has consent been obtained from Lloyds TSB Scotland to the proposed transfer of equity?

Please provide a copy of your National Insurance Number?

Who will be responsible for the costs of the Transfer of Equity?

Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

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?

Caveats to be read in in addition to the above Lloyds TSB Scotland 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 Lloyds TSB Scotland conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from 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 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 lawyer 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 conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Lloyds TSB Scotland.

Preparing the Transfer of Equity with a Lloyds TSB Scotland 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 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 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.


Frequently asked questions relating to Lloyds TSB Scotland transfer of equity