Examples of recent questions relating to Scottish Widows transfer of equity

• Is it possible to transfer the equity held in my property with my Scottish Widows home loan?
• Been looking at consumer blogs that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and simultaneously refinancing with Scottish Widows
• Me and a friend got a joint mortgage with Scottish Widows on a property about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. On the basis that we can settle on a price where do we go? Would there be any potential concerns with Scottish Widows with him being on the hook for the total loan as opposed to only half of it?
• Last year bought a apartment without my fiance’s name on the deeds. My lawyer claimed it is because she is not in the mortgage with Scottish Widows. Is it possible for me to add her name on the documents at HMLR?
• I am disposing of my share of a property in Warwick to my co-owners husband, they are sticking with Scottish Widows being the the existing mortgage company. We are debating as to who must cover the legal bill for the transfer of equity. Is this normally shared or is one of us obliged to cover the charges for?
• How much the typical solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Scottish Widows - and have been quoted Three Hundred pounds excluding VAT by Scottish Widows's approved conveyancing solicitor, Is this a reasonable price?
• What is the process for adding or removing names (transfer of equity) to or from my Scottish Widows mortgage account?

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

Information to consider in supplemental the above Scottish Widows transfer of equity Info :

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

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 varies based on the market value of the property at finalisation 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 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 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.