Examples of recent questions relating to TSB transfer of equity

• I am selling my equity in apartment in Birmingham to the other co-owners fiance, they are reapplying to TSB. We are haggling as to who should pay the charges for the transfer of equity. Is this normally split or is one of us obliged to cover the legal bill?
• As things stand I have a joint TSB mortgage with my step-brother and am investigating the feasibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to buy somewhere with my fiance. The outstanding mortgage is in the region 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
• At what stage do I cover the costs of stamp duty due for the transfer of equity in my property in my sole name which is happening simultaneously with a remortgage via TSB?
• What is the process for having someone removed from the title documents to a house if the home loan is with TSB
• I am trying to find a lawyer to undertake my transfer of equity. TSB are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Any flaws you see in this way of thinking?
• Me and my partner jointly own a house in Blaenavon . Mortgage is with TSB. I wish to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be straightforward?
• I am under the impression we would need at least AP1 and TR1. Is this true?

Examples of information requested in a conveyancer questionnaire relating to TSB Transfer of Equity

Important warnings to consider in supporting 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 titles

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 breach of your covenants under the lease. This could trigger 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 conveyancer 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 market value of the property at the time of completion of the transfer of equity conveyancing.

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 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.