Frequently asked questions relating to TSB transfer of equity
- Me and a friend got a joint mortgage with TSB on a apartment about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Assuming we can agree a figure what happens next? Is there likely to be any issue with TSB with him being solely liable for the total mortgage rather than only half of it?
- Is there such a thing a transfer of equity stamp duty calculator?
- My ex-fiance and I are in the market for a value for money conveyancing solicitor to help me sell in a transfer of equity and remortgage with TSB. I I am concerned about appointing the wrong one and there are plenty conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
- How much the typical solicitors charges are for a transfer of equity? I need to transfer equity and refinance - new loan with TSB - and have been quoted £250 excluding VAT by TSB's approved lawyer, Is this a reasonable price?
- My mum passed away half a year ago leaving a loan-free semi to me and my half brother equally. He has always lived in the house, there was a condition in her will saying the propertycould not be sold for 24 months following her death so he could continue to live there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the conventional way to purchase my share?
- I am planning on removing a name from a joint mortgage and the TSB need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Sedgefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the TSB conveyancing panel.
- I am transferring my equity in house in Birmingham to my co-owners fiance, they are sticking with TSB as the the existing lender. We are debating as to who must cover the legal bill for the transfer of equity. Should this be split or is one of us obliged to cover the legal bill?
Examples of information requested in a conveyancing solicitor questionnaire concerning a TSB Transfer of Equity
Please let us know if you are making any payment for the Transfer of Equity and to whom and specify the amount?
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of anyone to be added to the property title?
Information to consider in conjunction with the above TSB transfer of equity Questions and Answers :
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 TSB conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity transaction.
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 conveyancer 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 conveyancing solicitor 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.