Scottish Widows transfer of equity: q and a’s

• My current mortgage is with Scottish Widows. Can I transfer equity to someone less than 18 years old?
• I am searching for an affordable conveyancing lawyer to assist in a transfer of equity and refinance with Scottish Widows. I really don't want to get ripped off but with lots of conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
• What if my application doesn't meet Scottish Widows lending criteria for a transfer of equity?
• Last year bought a flat without my partner's name on the title documents. My conveyancer claimed it is because she is not in the loan offer with Scottish Widows. Is it possible for me to add her name on the documents at HM Land Registry?
• After four years separated I have opted to transfer my share of the apartment to my husband who is refinancing with Scottish Widows. Could this transfer of equity be completed in less than 28 days?
• I jointly own a property in Heathfield , with a Scottish Widows loan with my ex husband. He and his new partner are going to buy me out. We had consent from Scottish Widows to replace my name with hers. The transfer of equity has to be completed by a lawyer for Scottish Widows (apparently). Is it possible for us to deal with the Land Registry formalities?
• I already have a home loan with Scottish Widows and am maintaining my current mortgaging but applying to have it in my name alone so my ex won't be on it any longer. How long do Scottish Widows take to process the application?

Questions that your lawyer could ask in relation to your Scottish Widows Transfer of Equity

General Advice to read in further to the above Scottish Widows transfer of equity information :

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, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with 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 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 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 varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Scottish Widows Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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 conveyancing solicitor 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 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.