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Scottish Widows transfer of equity example support desk enquires

  • Our financial adviser has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Scottish Widows - Is it not simpler better to just instruct them?
  • I got my Decree Absolute in 2010. For some reason I never dealt with the change the ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Scottish Widows is happy to transfer the full equity in my name (financial checks done). Does she need a lawyer?
  • My father passed away seven months ago leaving a loan-free house to me and my step brother in equal shared. He has always lived in the house, there was a provision in the will saying the premisescould not be sold for three years after her death so he could remain there for a prescribed period. He now says he would like to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the usual way to buy my share?
  • I am selling my equity in flat in Warwick to my co-owners husband, they are reapplying to Scottish Widows. We are haggling as to who should cover the fees for the transfer of equity. Should this be shared or is one party liable for the charges for?
  • Have recently split up with my ex of thirty years. I'm now back with my parents again and she wants to stay in the flat and pay me off. What portion am I entitled to. Is it half of the equity after redeeming the Scottish Widows home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
  • My friend and I got a joint mortgage with Scottish Widows on a apartment a couple of years ago. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed a figure where do we go? Is there likely to be any problem with Scottish Widows with him being responsible for the total loan as opposed to only part of it?
  • What can I do where I am not happy with the conveyancing solicitor who handled our transfer of equity conveyancing?

Examples of questions in a conveyancing solicitor form concerning a Scottish Widows Transfer of Equity

If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Please give the name(s) and addresse(s) of anyone to be added to the property title?

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

Would you like us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

Can you give the details of anyone who jointly owns the premises with you?

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

Tax and Legal

There are numerous potential 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 freeholder. If such conditions are not complied with 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 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 the time of completion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Scottish Widows.

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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content 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.


Frequently asked questions relating to Scottish Widows transfer of equity