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Recently asked questions relating to TSB transfer of equity

  • I am transferring my share of a flat in Warwick to the other co-owners fiance, they are sticking with TSB being the the existing mortgage company. We are debating as to who must cover the costs of the transfer of equity. Should this be split or is one party obliged to cover the costs of?
  • When it comes to transfer of equity conveyancing involving a remortgage with TSB should I be invoiced value added tax 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
  • I already have a mortgage with TSB and am retaining my existing mortgaging but applying to have have the equity transferred to my name only so my former wife will come off the title. How long do TSB take to process the application?
  • My former husband are looking to get a conveyancer in place for a new mortgage with TSB. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over UK. Is it important to instruct a conveyancing solicitor local to us?
  • My fiance and myself jointly own a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to mitigate tax on rental income. If TSB are fine with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
  • Me and a friend got a joint mortgage with TSB on a apartment in 2013. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Would there be any potential problem with TSB with him being solely liable for the total loan rather than only part of it?
  • Me and my partner jointly own a property in Timperley . Home loan is with TSB. I would like to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be simple?

Sample of questions in a conveyancer form relating to TSB Transfer of Equity

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Please provide a copy of your National Insurance Number?

Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?

Please let us know where you are making any payment for the Transfer of Equity and to whom and disclose the amount?

Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Is the transfer of equity subject to a court order? If yes please supply a copy

Important warnings to consider in supplemental the above TSB transfer of equity Info :

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 TSB conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 TSB 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 TSB 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 valuation of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with TSB your property may be repossessed.

Preparing the Transfer of Equity with a TSB 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 TSB 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 TSB transfer of equity