Scottish Widows transfer of equity example support desk enquires
- I plan to refinance my home in Dunnington
switching from Natwest to Scottish Widows. The flat is currently in joint names but intend for it to be in my name only when I switch. My husband is OK with this and is happy to sign a form but neither of us want to incur conveyancer charges.
- I jointly own a flat in Littleborough
, with a Scottish Widows loan with my former partner. Him and his new partner are going to acquire my share. We had the go ahead from Scottish Widows to remove my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Scottish Widows (supposedly). Is it possible for us to deal with the Land Registry change?
- I already have a home loan with Scottish Widows and am keeping my current mortgaging but wish to have have the equity transferred to my sole name so my ex will be removed from the title. How long does the whole transfer of equity process take?
- My father died seven months ago leaving a loan-free bungalow to me and my step brother equally. Having continues to reside at the house, there was a condition in the will specifying that the premisescould not be sold for 24 months after her death so he could continue to live there for a while. He now wishes to remain in the property beyond the specified 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 conventional way to purchase my share?
- As things stand I have a joint Scottish Widows mortgage with my cousin and am investigating the possibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
- I got divorced in 2010. For some reason I never dealt with the change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Scottish Widows is content to transfer the full equity in my name (affordability checks done). Does she need any legal representation?
- Me and my partner jointly own a property in Dunnington
. Mortgage is with Scottish Widows. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be simple?
Questions that your lawyer is likely to ask in relation to your Scottish Widows Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has consent been obtained from Scottish Widows to the proposed transfer of equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
General Advice to read in in addition to the above Scottish Widows transfer of equity information :
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 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 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 is dependent on the valuation of the property at the conclusion 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 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 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.
