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Scottish Widows

Common questions relating to Scottish Widows transfer of equity

  • Scottish Widows have just agreed I can take over the mortgage on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
  • Can you tell me how to have a person removed from the deeds to a house if the mortgage is with Scottish Widows
  • As things stand I have a joint Scottish Widows mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is in the region 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax due?
  • I am planning on removing a name from a joint mortgage and the Scottish Widows need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Wakefield lawyer to deal with the transfer of equity? They need to be on the Scottish Widows conveyancing panel.
  • My -ex-husband and I are are seeking to find a value for money conveyancing solicitor to help me sell in a transfer of equity and refinance with Scottish Widows. I want to avoid being ripped off but with plenty conveyancing practices who do transfer of equity conveyancing out there...who's the best?
  • My current home loan is with Scottish Widows. Can I transfer equity to someone who is not yet 18 years old?
  • What if my application doesn't meet Scottish Widows lending criteria for a transfer of equity?

Examples of questions in a lawyer form concerning a Scottish Widows Transfer of Equity

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

Has consent been obtained from Scottish Widows to the proposed transfer of equity?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

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

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?

Caveats to be read in conjunction with the above Scottish Widows transfer of equity Advice :

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 titles

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under 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 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 market value 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 conveyancer 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 does not constitute 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