Lloyds TSB Scotland transfer of equity: q and a’s
- My wife and myself have equal shares in a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name in order mitigate tax on the letting income. Assuming Lloyds TSB Scotland are happy with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the deeds would I lose my CGT relief.
- In 2013 I bought a flat without my partner's name on the title documents. My conveyancer advised it is because she is not in the mortgage with Lloyds TSB Scotland. I'm wondering is there any way that I can put her name on the documents at HM Land Registry?
- What do I do if I am unhappy with the conveyancing solicitor who did our transfer of equity transaction?
- Me and my partner jointly own a house in Ampthill . Mortgage is with Lloyds TSB Scotland. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be easy to so?
- I am looking for a conveyancer to handle my transfer of equity. Lloyds TSB Scotland have been approached for a refinancing. I considered asking my mortgage broker. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancer, has a working relationship with them. Any flaws you see in this way of thinking?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Lloyds TSB Scotland?
- My friend and I got a joint mortgage with Lloyds TSB Scotland on a apartment about a year ago. I am now thinking of purchasing a house on my own and my friend would like to buy me out. Assuming we can agree an amount what happens next? Is there likely to be any concerns with Lloyds TSB Scotland with him being solely liable for the total mortgage as opposed to only half of it?
Sample of questions in a conveyancing solicitor form relating to Lloyds TSB Scotland 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 to be added to the title deeds?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure
Please provide a copy of your National Insurance Number?
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?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
General Advice to read in supplemental the above Lloyds TSB Scotland transfer of equity Advice :
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 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.
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 situations, 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 time of completion of the transfer of equity conveyancing.
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 lawyer 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.