Common questions relating to Lloyds TSB Scotland transfer of equity

• My brother and I got a joint mortgage with Lloyds TSB Scotland on a property about a year ago. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Is there likely to be any problem with Lloyds TSB Scotland with him being on the hook for the total loan as opposed to only half of it?
• I purchased a house with a friend five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Lloyds TSB Scotland mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I am answering a Lloyds TSB Scotland transfer of equity application and have come to the section regarding defaults etc. I do some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit score. Am I obliged to declare these?
• I am transferring my equity in property in Birmingham to my co-owners fiance, they are sticking with Lloyds TSB Scotland being the the existing lender. We are haggling as to who must cover the costs of the transfer of equity. Should this be split or is one of us obliged to cover the legal bill?
• My existing home loan is with Lloyds TSB Scotland. Can I transfer equity to someone under 18 years old?
• Lloyds TSB Scotland yesterday agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
• After a number of years apart I have made the decision to transfer my share of the apartment to my husband who is re-mortgaging with Lloyds TSB Scotland. Could this transfer of equity be completed inside one month?

Questions that your lawyer is likely to ask regarding your Lloyds TSB Scotland Transfer of Equity

Information to consider in supporting 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 titles

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in violation of the lease. This could potentially result in 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 conveyancer 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 the conclusion of the transfer of equity conveyancing.

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 conveyancing solicitor 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.