Sample questions relating to Scottish Widows transfer of equity

• My Scottish Widows mortgage we jointly entered into with ex, he has agreed to be removed and put the house in my name alone. Scottish Widows have consented to the transfer of equity to me solely. Do Scottish Widows get in touch with my boss to confirm my salary?
• Can I apply to request more money from Scottish Widows as part of a Transfer of Equity?
• My fiance and I have 50:50 shares in a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name with a view to reduce our tax on rental income. If Scottish Widows are content with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds would I lose my CGT relief.
• Am I best advised stop the direct debit for my mortgage with Scottish Widows once a date for my remortgage and transfer of equity has been set?
• The mortgage broker has recommended their conveyancer for my Transfer of Equity plus remortgage with Scottish Widows - Is it not simpler better to just instruct them?
• I intend to refinance my home in Friern Barnet changing from Yorkshire Bank Home Loans to Scottish Widows. The apartment is currently in joint names but intend for it to be in my sole name as and when I remortgage. My wife has agreed to this and is willing to transfer equity but neither of us want to incur lawyer fees.
• I got my Decree Absolute in 2010. For some reason I never got around to change the ownership from both our names to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Scottish Widows is content to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?

Questions that your conveyancing solicitor could ask regarding your Scottish Widows Transfer of Equity

Important warnings to consider in conjunction with the above Scottish Widows transfer of equity Info :

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

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed 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 transaction.

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 conveyancer 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.