Common questions relating to Bank of Scotland transfer of equity

• My Bank of Scotland mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Bank of Scotland have consented to the transfer of equity to my individual name. Do Bank of Scotland get in touch with my employer to verify my salary?
• I plan to refinance my home in Rye switching from Virgin Money to Bank of Scotland. The flat is currently in joint names but wish for it to be in my sole name when I transfer. My wife has verbally consented to this and is willing to transfer equity but neither of us want to incur lawyer charges.
• Been looking at consumer blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously refinancing with Bank of Scotland
• I currently have a joint Bank of Scotland mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to buy a property with my partner. The outstanding mortgage is in the region 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
• I already have a home loan with Bank of Scotland and am maintaining my existing mortgaging but wish to have it in my name only so my ex won't be on it any longer. How long can it take for the forms to be processed?
• Law month I separated from my wife of twenty years. I'm now back with my parents again and she wants to remain in the flat and pay me off. What portion do I get. Is it half of the equity after discharging the mortgage with Bank of Scotland? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
• Will I incur any fees for a Transfer of Equity where the existing home loan is with Bank of Scotland?

Examples of information requested in a conveyancing solicitor form concerning a Bank of Scotland Transfer of Equity

General Advice to read in supporting the above Bank of Scotland transfer of equity Questions and Answers :

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 Bank of Scotland conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach 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 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 valuation of the property at the time of completion of the transfer of equity conveyancing.

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 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 should not be regarded as 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.