Transfer of Equity

1) Transfer of equity criteria:

A transfer of equity where a change in the ownership of a property where at least one of the people named on the mortgage is remaining on it, but a change is happening with regard to another person – such as removing one person from the mortgage or adding a new person, will be dealt with as a C&G remortgage. A transfer of equity where an existing borrowing is replaced with a new one, where none of the original borrower(s) remain on the mortgage, will be dealt with as a house purchase. See different scenarios of transfer of equity and how the case will be treated.

 

If a transfer of equity is required, the name(s) on the title deeds to the property and the mortgage will need to be undertaken by the conveyancer instructed on behalf of, Lloyds TSB Bank plc, in connection with the remortgage/house purchase, as appropriate.

 

Acceptable transfers of equity applications are:

 

• removing a borrower, e.g. joint to sole
• adding a borrower, e.g. sole to joint
• replacing an existing borrower with a new one, e.g. sole to sole or joint to joint (where none of the original borrower(s) will remain on the mortgage)
• Lloyds/TSB heritage customers requesting any of the above.

In any transfer of equity situation, there should be a 'connection' between the individuals involved in the transaction. The connection must be one of the following:

 

• spouse (it is acceptable for the parties to be divorced)
• co-habitee (this does not include tenant/landlord type of relationship or anything that is more of a 'business' rather than a 'family' nature)
• parent
• sibling
• child
• step-parent
• step-child
• grandparent
• grandchild
• parent-in-law
• child-in-law.

Different scenarios of transfer of equity and how the case will be treated:

 

The following scenarios can be dealt as an account amendment:

 

• death case, transferring a deceased borrowers mortgage to the name of the beneficiary
• removing a guarantor.

Where the application is to replace an existing borrower with a new one i.e. sole to sole or joint to joint (where none of the original borrower(s) will remain on the mortgage), these applications will be processed as a house purchase application.

 

With the exception of applications where a guarantor is being removed or where it is a sole to sole or joint to joint transfer, all other transfers of equity will be dealt with as C&G remortgages and remortgage lending criteria applies.

 

Where the transfer of equity involves adding or removing a borrower, and the current mortgage is also in negative equity, the applications will be referred to Underwriters.

 

For joint to sole or sole to joint cases, it is also possible for the remaining borrower to port the existing terms of their mortgage, see our porting page.

 

For further guidance call our product and policy line on 0845 604 1206

 

2) Check how much your clients can afford to borrow

Use our affordability calculator - get a quick guide to how much your client could borrow. 

 

3) What products are available for a Transfer of Equity?

For joint to sole or sole to joint transfer of equity applications, please see our current range of remortgage products.

 

Where the application is to replace an existing borrower with a new one, i.e. sole to sole or joint to joint (where none of the original borrower(s) will remain on the mortgage), please see our current range of house-purchase products.

4) How to apply

Transfer of Equity applications on a C&G mortgage must be completed using a paper application form. The following steps will guide on how to submit a case to us.

 

• Key Fact Illustration – simply download the KFI Application form. Once completed fax it to 0845 600 2875.
• Decision in Principle – You can get a DIP for your client by downloading a Mortgage Decision in Principle and Application form. Once completed simply fax it to your processing team on 0845 600 2364.
• Full Mortgage Application – simply download the Mortgage Decision in Principle and Application form. Once completed this must then be posted to us along with payment for any fees using the Mortgage application Fees form. For further help on how to complete the application form, please follow the instructions on the download page or call us on 0845 603 6082.

5) What fees apply and how to pay

In addition to sending in the Full Mortgage Application form, you’ll need to complete a Mortgage Application Fees form for the relevant fees. To check what you’re clients will need to pay, please see the list below.

 

Application Fee

The normal £99 application fee does not apply.

 

Product Fee

The product fee of any new product selected will be automatically added to the loan. For further details see the product fee page.

 

Valuation Fee

There will be no valuation fee for a Transfer of Equity.

 

Legal Costs

If the case is eligible, a legal work service is available for sole to joint and joint to sole transfer of equity applications for a fee of £265 plus VAT, disbursements, and additional associated costs. However exlusions apply, for example, if the mortgage is currently in negative equity your client would need to instruct their own solicitors. See the free and non-standard legal work page for further details.

 

Procuration fees

For transfer of equity applications you will receive a procuration fee and this will be based upon the whole of the borrowing – including the existing. See our intermediary payments page for further details.

6) How do I track my case?

Your processing team will be in regular contact with you about your application; however if you wish to send us further information then you can always send us a fax – along with the Intermediary Fax Cover sheet – to 0845 600 2367.

 

If you’d like to get in touch by phone and you don’t know the number for your processing team, then you can use our Contact Us facility.