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Bank of Scotland transfer of equity: q and a’s

  • Am I best advised stop the direct debit for my mortgage with Bank of Scotland as soon as a date for my remortgage and transfer of equity has been set?
  • What are the average conveyancing fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Bank of Scotland - and have been quoted £250 excluding VAT by Bank of Scotland's appointed conveyancer, Is this is a good price or not?
  • I am thinking of remortgaging my apartment in Ampthill does my lawyer need to be on the Bank of Scotland Solicitor panel. The conveyancing also involves a transfer of equity.
  • I am transferring my equity in property in Hendon to my co-owners fiance, they are sticking with Bank of Scotland being the the existing mortgage company. We are in heated discussion as to who should pay the legal bill for the transfer of equity. Is this usually shared or is one party liable for the costs of?
  • After three years estranged I have opted to relinquish up my interest in our former home to my husband who is re-mortgaging with Bank of Scotland. Could this transfer of equity be completed within 28 days?
  • My partner and I have equal shares in a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name with a view to reduce our tax on the letting income. If Bank of Scotland are happy with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • Me and my partner jointly own a property in Blaenavon . Mortgage is with Bank of Scotland. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be easy to so?

Questions that your conveyancing solicitor is likely to ask about your Bank of Scotland Transfer of Equity

Have you approached Bank of Scotland to seek consent to the Transfer of Equity

Can you provide the details of anyone who jointly owns the property with you?

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Has one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please give the name(s) and addresse(s) of anyone to be removed from the property title?

Important warnings to consider in conjunction with the above Bank of Scotland transfer of equity Questions and Answers :

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 Bank of Scotland 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 landlord. If such conditions are not strictly observed 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 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 Bank of Scotland 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 Bank of Scotland 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 finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Bank of Scotland your property may be repossessed.

Preparing the Transfer of Equity with a Bank of Scotland 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 Bank of Scotland 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 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.


Frequently asked questions relating to Bank of Scotland transfer of equity