Frequently asked questions relating to Scottish Widows transfer of equity
- How and when do I incur stamp duty payable for the transfer of equity in my home in my sole name which is happening simultaneously with a refinancing via Scottish Widows?
- My ex are seeking to get a conveyancer in place for a remortgage with Scottish Widows. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over UK. Is it important to appoint a conveyancing solicitor local to us?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- My fiance and myself have 50:50 shares in a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to mitigate tax on the letting income. If Scottish Widows are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Scottish Widows mortgage. I have contacted Scottish Widows for the transfer of equity forms. What are my next steps?
- I co-own a property in Dunnington
, with a Scottish Widows mortgage with my former husband. Him and his new partner are going to buy me out. We had consent from Scottish Widows to substitute my name with hers. The transfer of equity has to be done by a lawyer for Scottish Widows (supposedly). Can we deal with the Land Registry formalities?
- I am completing a Scottish Widows transfer of equity form and have arrived at the part concerning debts etc. There are some debts that I have been reducing since 2008, in fact they no longer remain my credit records. Am I obliged to declare these?
Information that may be required from your conveyancer may ask regarding your Scottish Widows Transfer of Equity
Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please inform us if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?
Has consent been obtained from Scottish Widows to the proposed transfer of equity?
Can you give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in supporting the above Scottish Widows 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 Scottish Widows 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 require 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 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 conveyancing solicitor will check with Scottish Widows 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 Scottish Widows 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 Scottish Widows.
Preparing the Transfer of Equity with a Scottish Widows 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 Scottish Widows 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.