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Recently asked questions relating to TSB transfer of equity

  • What can I do where I am not happy with the conveyancing solicitor who handled our transfer of equity conveyancing?
  • How and when do I cover the costs of stamp duty chargeable for the transfer of equity in my property in my name alone which is happening at the same time as a remortgage via TSB?
  • What should I be budgeting for when it comes to what conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with TSB - and have been quoted £250 plus VAT by TSB's appointed conveyancing solicitor, Is this a reasonable price?
  • What is the process for having a person removed from the deeds to a house if the mortgage is with TSB
  • The financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with TSB - won’t it be better to just instruct them?
  • My partner and I jointly own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. If TSB are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • I currently have a joint TSB mortgage with my brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a property with my partner. The remaining mortgage is about 250k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?

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

Who will be responsible for the costs of the Transfer of Equity?

Is it the case that 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..

Has consent been obtained from TSB to the proposed transfer of equity?

Please give the details of anyone to be removed from the property title?

Please let us know if you are providing any payment for the Transfer of Equity and to whom and specify the amount?

Please list all persons who occupy the property, their respective ages and relationships to you.

General Advice to read in in addition to 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, the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of 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 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 varies based on the market value of the property at the conclusion 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 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.


Frequently asked questions relating to TSB transfer of equity