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Scottish Widows

Common questions relating to Scottish Widows transfer of equity

  • What if my application doesn't meet Scottish Widows lending criteria for a transfer of equity?
  • My dad died half a year ago leaving a unencumbered semi to me and my brother in equal shared. He has always lived in the premises, there was a condition in the will saying the premisescould not be sold for three years following her passing so he could continue to live there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to acquire my half from me?
  • Is it sensible to cancel my mortgage payments with Scottish Widows as soon as a date for my remortgage and transfer of equity has been agreed?
  • Two years ago I purchased a property without my partner's name on the title. My conveyancer advised it is due to the fact that she was not in the loan offer with Scottish Widows. I'm wondering is there any way that I can add her name on the documents at HMLR?
  • At what point do I cover the costs of stamp duty chargeable for the transfer of equity in my home in my name alone which is happening at the same time as a remortgage with Scottish Widows?
  • My ex are looking to get a conveyancer lined up for a new mortgage with Scottish Widows. Transfer of Equity conveyancing is also requiredI have used the different rating based websites and the results are from all over England and Wales. How necessary is it to instruct a lawyer local to us?
  • Me and my former wife and I are searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Scottish Widows. I want to avoid being ripped off but with plenty conveyancing firms who do transfer of equity conveyancing to pick from...who's the best?

Information that may be required from your conveyancing solicitor is likely to ask regarding your Scottish Widows Transfer of Equity

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Who will be responsible for the costs of the Transfer of Equity?

If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please give the details of anyone to be added to the title deeds?

Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Information to consider in supporting the above Scottish Widows 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 Scottish Widows 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 obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 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 varies based on the valuation of the property at the conclusion 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 conveyancing solicitor 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.

Information contained within 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.


Frequently asked questions relating to Scottish Widows transfer of equity