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Scottish Widows

Frequently asked questions relating to Scottish Widows transfer of equity

  • I am planning on removing a name from a joint mortgage and the Scottish Widows need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Rye conveyancing solicitor to deal with the transfer of equity? They need to be on the Scottish Widows conveyancing panel.
  • My partner and I jointly own a house in Winchelsea . Mortgage is with Scottish Widows. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be straightforward?
  • What are the average solicitors charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Scottish Widows - and have been quoted £350 plus VAT by Scottish Widows's appointed conveyancing solicitor, Have I been over quoted?
  • I own a house in Winchelsea , with a Scottish Widows loan with my ex husband. Him and his fiance are going to buy me out. We had consent from Scottish Widows to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Scottish Widows (supposedly). In order to save fees can I deal with the Land Registry change?
  • What can I do where I am unhappy with the conveyancing solicitor who conducted my transfer of equity transaction?
  • In 2011 I purchased a apartment without my fiance’s name on the title documents. My conveyancer advised it is because she was not in the mortgage with Scottish Widows. I'm wondering is there any way that I can put her name on the documents at HMLR?
  • My fiance and I jointly own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name in order reduce our tax on the letting income. If Scottish Widows are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.

Sample of questions in a lawyer questionnaire relating to Scottish Widows Transfer of Equity

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?

Have you approached Scottish Widows to obtain consent to the Transfer of Equity

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Is the transfer of equity subject to a court order? If yes please supply a copy

Information to consider in conjunction with the above Scottish Widows transfer of equity Questions and Answers :

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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger 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 conveyancer 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 market value 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 lawyer 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.


Frequently asked questions relating to Scottish Widows transfer of equity