Frequently asked questions relating to TSB transfer of equity

• I got my Decree Absolute two years ago. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. TSB is willing to transfer the full equity in my name (financial checks done). Does she need a lawyer?
• My -ex-husband and I are are looking to find a trustworthy conveyancing lawyer to assist in a transfer of equity and refinance with TSB. I I am fearful of by bill escalating out of control and there's many conveyancing practices who do transfer of equity conveyancing out there...how do I know which is best select?
• My decree absolute is through as is the consent order. Now I must deal with the transfer of equity for the property and the TSB mortgage. I have asked TSB for the transfer of equity forms. What are my next steps?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my TSB mortgage account?
• What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to TSB - and have been quoted £350 excluding VAT by TSB's approved lawyer, Have I been over quoted?
• My TSB mortgage is in joint names with ex, he has agreed to be removed and let me have the property. TSB will permit the transfer of equity to me solely. Do TSB get in touch with my employer to check my salary?
• Our mortgage broker has suggested using their conveyancer for our Transfer of Equity plus remortgage with TSB - Is it not simpler better to just instruct them?

Sample of questions in a lawyer form concerning a TSB Transfer of Equity

Information to consider in conjunction with 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 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 freeholder. 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.

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 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.

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 lawyer 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 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.