Recently asked questions relating to Lloyds TSB Scotland transfer of equity
- My mother passed away seven months ago leaving a mortgage-free property to me and my step brother 50:50. He has always lived in the house, there was a provision in the will saying the housecould not be sold for 2 years following her death so he could remain there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to buy my half from me?
- I am in the market for a quality conveyancing lawyer to help me sell in a transfer of equity and remortgage with Lloyds TSB Scotland. I want to avoid being ripped off and there's various conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- My brother and I got a joint mortgage with Lloyds TSB Scotland on a property in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential problem with Lloyds TSB Scotland with him being on the hook for the total mortgage as opposed to only part of it?
- Will I incur any charges for a Transfer of Equity where the current home loan is with Lloyds TSB Scotland?
- I already have a mortgage with Lloyds TSB Scotland and am retaining my current mortgaging but applying to have it in my sole name so my ex will no longer be on the deeds. How long do Lloyds TSB Scotland take to process the application?
- After 5 years separated I have made the decision to give up my interest in our former home to my husband who is refinancing with Lloyds TSB Scotland. Could this transfer of equity be completed inside 28 days?
- Is it possible to transfer the equity held in my property with my Lloyds TSB Scotland mortgage?
Sample of information requested in a conveyancer form relating to Lloyds TSB Scotland Transfer of Equity
Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Can you give the name(s) and addresse(s) of those who jointly own the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be added to the property title?
Would you like us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
Please provide a copy of your National Insurance Number?
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 properties
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with 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 pursuant to 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 valuation of the property at the time of completion of the transfer of equity conveyancing.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.