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Scottish Widows

Sample questions relating to Scottish Widows transfer of equity

  • My existing mortgage is with Scottish Widows. Can I transfer equity to someone who is not yet eighteen years old?
  • Taking into account that we have been three years estranged I have made the decision to give up my interest in the former home to my husband who is refinancing with Scottish Widows. Could this transfer of equity be done within four weeks?
  • Law week I separated from my ex of twenty years. I'm now living with my parents again and she wishes to remain in the apartment and buy me out. What percentage do I get. Is it 50% of the equity after discharging the Scottish Widows home loan? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • Do I need legal representation when doing a transfer of equity where the mortgage is to remain with Scottish Widows?
  • Me and my partner jointly own a house in Littleborough . Home loan is with Scottish Widows. I would like to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be straightforward?
  • Scottish Widows have today agreed I can take over the mortgage on the house. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry as well?

Information that may be required from your conveyancer is likely to ask about your Scottish Widows Transfer of Equity

Please list all persons who occupy the property, their respective ages and relationships to you.

Please give the details of anyone to be removed from the title deeds?

Have you approached Scottish Widows to obtain consent to the Transfer of Equity

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

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

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in conjunction with 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 titles

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under 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 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 the conclusion 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 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 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.


Frequently asked questions relating to Scottish Widows transfer of equity