Examples of recent questions relating to TSB transfer of equity
- I am filling out a TSB transfer of equity request and have arrived at the questions concerning debts etc. There are some debts that I have been paying off over a long period, I understand that they no longer remain my credit score. Do I need to set these out?
- I am in the process of mortgaging my flat in Ampthill does my lawyer need to be on the TSB Solicitor panel. The conveyancing also involves a transfer of equity.
- I am looking for a conveyancer to deal with my transfer of equity. TSB have been approached for a remortgage. I considered asking my mortgage broker. I understand he may receive a referral fee for recommending a firm, 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 a friend got a joint mortgage with TSB on a apartment a couple of years ago. I am now thinking of buying a flat by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Is there likely to be any issue with TSB with him being on the hook for the total mortgage as opposed to only part of it?
- I am disposing of my share of a flat in Birmingham to the other co-owners fiance, they are sticking with TSB as the the existing lender. We are haggling as to who should pay the legal bill for the transfer of equity. Should this be shared or is one party liable for the legal bill?
- Is it possible to transfer the equity held in my property with my TSB mortgage?
- After four years apart I have opted to relinquish up my interest in the property to my husband who is re-mortgaging with TSB. Could this transfer of equity be completed in 28 days?
Examples of information requested in a conveyancing solicitor questionnaire relating to TSB Transfer of Equity
Has one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the details of anyone to be added to the title deeds?
Please provide a copy of your National Insurance Number?
Have you approached TSB to seek consent to the Transfer of Equity
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Important warnings to consider in conjunction with the above TSB 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 TSB conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 cases, 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 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 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 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 conveyancer 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.