Top seven questions relating to TSB transfer of equity
- I am am in need of a lawyer to undertake my transfer of equity. TSB are dealing with the remortgage. I considered asking my financial adviser. I understand he may receive a kickback for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic flawed?
- How much the typical legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to TSB - and have been quoted £250 including VAT by TSB's appointed lawyer, Is this a reasonable price?
- TSB have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- My dad died early last year leaving a unencumbered semi to me and my step brother equally. Having continues to reside at the property, there was a clause in her will specifying that the premisescould not be sold for 2 years following her death so he could reside there for a specified time frame. He now wants to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to acquire my share?
- As things stand I have a joint TSB mortgage with my brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my partner. The remaining mortgage is about 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty payable?
- Can you tell me how to have a person removed from the deeds to a house where the home loan is with TSB
- My ex-partner and I are searching for a value for money conveyancing lawyer to help me sell in a transfer of equity and remortgage with TSB. I am aware of the dangers of getting ripped off and there's lots of conveyancing firms who do transfer of equity conveyancing to choose from...who do I opt for?
Sample of questions in a conveyancing solicitor form concerning a TSB Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please give the details of anyone to be removed from the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please provide the details of anyone to be added to the title deeds?
General Advice to read in in addition to 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, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of the lease. This could trigger 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 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 valuation of the property at finalisation 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 conveyancing solicitor 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.
Content 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.