Sample questions relating to Lloyds TSB Scotland transfer of equity

• I co-own a property in Witham , with a Lloyds TSB Scotland loan with my ex husband. He and his new partner are going to buy me out. We had approval from Lloyds TSB Scotland to substitute my name with hers. The transfer of equity needs to be done by a conveyancer for Lloyds TSB Scotland (supposedly). Can we do the Land Registry formalities?
• Lloyds TSB Scotland have today agreed I can take over the mortgage on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
• My mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Lloyds TSB Scotland - Surely it’s better to just use them?
• I am completing a Lloyds TSB Scotland transfer of equity request and have come to the questions that asks about defaults etc. There are some debts that I have been reducing over a long period, in fact they no longer remain my credit score. Must I set these out?
• I already have a mortgage with Lloyds TSB Scotland and am retaining my existing mortgaging but seeking to have it in my sole name so my ex will no longer be on the title. How long do Lloyds TSB Scotland take to deal with the application?
• As things stand I have a joint Lloyds TSB Scotland mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is in the region 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
• Can I apply to request more money from Lloyds TSB Scotland as part of a Transfer of Equity?

Information that may be required from your conveyancer may ask regarding your Lloyds TSB Scotland Transfer of Equity

Caveats to be read in further to the above Lloyds TSB Scotland transfer of equity Info :

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 Lloyds TSB Scotland conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 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 market value of the property at finalisation of the transfer of equity transaction.

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 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.