Top seven questions relating to Scottish Widows transfer of equity

• My brother and I got a joint mortgage with Scottish Widows on a apartment a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed a price what happens next? 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?
• Me and my partner co-own a house in Crabtree . Mortgage is with Scottish Widows. I would like to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be simple?
• At what stage do I pay stamp duty payable for the transfer of equity in my home in my name alone which is happening simultaneously with a switching mortgage with Scottish Widows?
• I am planning on removing a name from a joint mortgage and the Scottish Widows need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Friern Barnet lawyer to deal with the transfer of equity? They need to be on the Scottish Widows conveyancing panel.
• I am selling my share of a house in Warwick to my co-owners fiance, they are sticking with Scottish Widows being the the existing mortgage company. We are in heated discussion as to who must cover the charges for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
• Me and my former wife and I are are looking to find a trustworthy conveyancing solicitor to help me sell in a transfer of equity and refinance with Scottish Widows. I I am fearful of appointing the wrong one but with various conveyancing organisations who do transfer of equity conveyancing to choose from...who do I opt for?
• When it comes to transfer of equity conveyancing involving a remortgage with Scottish Widows should I be invoiced VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Questions that your conveyancing solicitor may ask about your Scottish Widows Transfer of Equity

General Advice to read in in addition to the above Scottish Widows transfer of equity Questions and Answers :

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

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 freeholder. If such terms are not adhered to you may be in breach of 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 conveyancer 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.

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 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.