Sample questions relating to Scottish Widows transfer of equity

• I got my Decree Absolute in 2011. I simply never got around to transfer ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Scottish Widows is happy to transfer the full equity in my name (financial checks done). Does my ex need a solicitor?
• I am led to believe we would need at least AP1 and TR1. Is this true?
• I already have a home loan with Scottish Widows and am maintaining my existing mortgaging but wish to have it in my name alone so my ex won't be on it any longer. How long can it take for the application to be processed?
• I intend to refinance my home in Winchelsea moving from Accord to Scottish Widows. The apartment is currently in joint names but wish for it to be in my name only when I switch. My wife has verbally consented to this and is willing to sign a form but neither of us want to incur conveyancer charges.
• I am planning on removing a name from a joint mortgage and the Scottish Widows need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Blaenavon lawyer to deal with the transfer of equity? They need to be on the Scottish Widows conveyancing panel.
• What if my application doesn't meet Scottish Widows lending criteria for a transfer of equity?
• I am filling out a Scottish Widows transfer of equity form and have come to the questions regarding debts etc. I do some debts that I have been paying off for a number of years, in fact they no longer remain my credit rating. Must I set these out?

Questions that your conveyancing solicitor is likely to ask in relation to your Scottish Widows Transfer of Equity

General Advice to read in conjunction with the above Scottish Widows transfer of equity information :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Scottish Widows conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 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 conveyancing solicitor will check with Scottish Widows 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 Scottish Widows 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 market value of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Scottish Widows 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 Scottish Widows 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 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.