Top seven questions relating to Scottish Widows transfer of equity
- I am in the process of remortgaging my property in Blaenavon
does my lawyer have to be on the Scottish Widows Conveyancing panel. The conveyancing also involves a transfer of equity.
- Have recently separated from my ex of thirty years. I'm now living with my parents again and she wants to remain in the flat and pay me off. What percentage am I entitled to. Is it half of the equity after discharging the mortgage with Scottish Widows? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being taken advantage of
- I acquired a house with a friend six years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Scottish Widows mortgage. There is a significant difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- Me and my partner co-own a property in Romsey
. Mortgage is with Scottish Widows. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be simple?
- As things stand I have a joint Scottish Widows mortgage with my step-brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, to enable me to purchase a place with my partner. The remaining mortgage is in the region 175k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
- Me and a friend got a joint mortgage with Scottish Widows on a house a couple of years ago. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Assuming we can agree a figure where do we go? Is there likely to be any issue with Scottish Widows with him being solely liable for the total loan rather than only part of it?
- Been reviewing online forums 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 if I am transferring equity and at the same time switching mortgage with Scottish Widows
Examples of questions in a conveyancing solicitor form relating to Scottish Widows Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Is the transfer of equity subject to a court order? If yes please supply a copy
Please list all persons who occupy the property, their respective ages and relationships to you.
Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?
Caveats to be read in in addition to 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 premises
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 lawyer 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 conveyancing.
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 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.