Lloyds TSB Scotland transfer of equity: q and a’s

• My fiance and myself equally own a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order reduce our tax on rental income. If Lloyds TSB Scotland are content with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
• I am remortgaging my apartment in Ampthill does my lawyer need to be on the Lloyds TSB Scotland Conveyancing panel. The conveyancing also involves a transfer of equity.
• Is there such a thing a transfer of equity stamp duty calculator?
• What is the process for having a person removed from the deeds to a house where the mortgage is with Lloyds TSB Scotland
• I am in the process of removing a name from a joint mortgage and the Lloyds TSB Scotland require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Wakefield lawyer to deal with the transfer of equity? They need to be on the Lloyds TSB Scotland conveyancing panel.
• Three years ago I bought a house without my fiance’s name on the title. My lawyer said it is because she is not in the mortgage with Lloyds TSB Scotland. Is it possible for me to add her name on the documents at HM Land Registry?
• As things stand I have a joint Lloyds TSB Scotland mortgage with my brother and am investigating the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my partner. The remaining mortgage is in the region 300k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?

Information that may be required from your lawyer could ask in relation to your Lloyds TSB Scotland Transfer of Equity

General Advice to read in in addition to 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 properties

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of the lease. This could potentially result in 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 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 varies based on the valuation 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 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 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.