Lloyds TSB Scotland transfer of equity example support desk enquires
- Having been 5 years separated I have decided to give up my interest in the former home to my husband who is refinancing with Lloyds TSB Scotland. Can a transfer of equity be done in one month?
- When it comes to transfer of equity conveyancing involving refinance with Lloyds TSB Scotland should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Online reading suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Lloyds TSB Scotland
- Will I incur any fees for a Transfer of Equity where the existing home loan is with Lloyds TSB Scotland?
- My current mortgage is with Lloyds TSB Scotland. Can I transfer equity to someone under eighteen years old?
- I got divorced two years ago. I simply never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Lloyds TSB Scotland is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
- I currently 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 removing myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is about 200k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
Examples of questions in a lawyer form concerning a Lloyds TSB Scotland Transfer of Equity
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
Please give the details of anyone who jointly owns the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Information to consider in supplemental the above Lloyds TSB Scotland transfer of equity information :
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, 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 conditions are not complied with you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 is dependent on the market value of the property at the conclusion 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 lawyer 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.
Content on 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.