Change of ownership from wife to husband and wife

My wife owns a second house and wishes to add myself as co-owner.
She has a mortgage with Lloyds Bank. Will the Bank need to be informed?
As the current owner, do the Land Registry already have her proof of identity?
Please advise what she should state in section 4 as Application and fee. 
Thank you. 

Galene - yes and the lender normally has to consent to the Transfer
No and all parties will have to have their identities verified
Panel 4 of form AP1 should state Transfer. I assume the Transfer is a gift (no monies) so should state the full market value less the amount outstanding on the mortgage. Scale 2 fee on half that equity figure is then the fee