Scottish Widows transfer of equity example support desk enquires
- I understand we would need at least AP1 and TR1. Is this true?
- Can you tell me how to have someone removed off the deeds to a house where the mortgage is with Scottish Widows
- I am answering a Scottish Widows transfer of equity request and have arrived at the part regarding debts etc. There are some debts that I have been paying off over a long period, in fact they no longer remain my credit score. Am I obliged to declare these?
- My mother died seven months ago leaving a loan-free semi to me and my step brother in equal shared. Having continues to reside at the property, there was a condition in the will saying the premisescould not be sold for 24 months after her passing so he could reside there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the usual way to buy my half from me?
- My partner and I co-own a property in Rye
. Home loan is with Scottish Widows. I would like to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be simple?
- My former husband are seeking to get a conveyancing solicitor in place for a refinance 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. Do we need to instruct a conveyancer local to us?
- When it comes to transfer of equity conveyancing involving a remortgage with Scottish Widows should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
Sample of questions in a conveyancer questionnaire concerning a Scottish Widows Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
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..
Please give the details of anyone to be removed from the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Information to consider in supplemental the above Scottish Widows transfer of equity Questions and Answers :
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 properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Scottish Widows your property may be repossessed.
Preparing the Transfer of Equity with a Scottish Widows 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 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.