Questions and answers: Bank of Scotland transfer of equity
- How much the typical conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Bank of Scotland - and have been quoted £250 excluding VAT by Bank of Scotland's appointed conveyancing solicitor, Have I been over quoted?
- Me and my former partner and I are in the market for a value for money conveyancing lawyer to help me sell in a transfer of equity and remortgage with Bank of Scotland. I want to avoid being ripped off but with various conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which one is best appoint?
- Me and a friend got a joint mortgage with Bank of Scotland on a property about a year ago. I am now thinking of purchasing a house by myself and my friend would like to buy me out. Once we have agreed a price where do we go? Would there be any potential problem with Bank of Scotland with him being responsible for the total mortgage rather than only half of it?
- Been reviewing online blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously switching mortgage with Bank of Scotland
- What can I do where I am not happy with the conveyancer who undertook my transfer of equity transaction?
- My former husband are looking to get a lawyer in place for a new mortgage with Bank of Scotland. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over UK. Is it important to have a conveyancer local to us?
- As things stand I have a joint Bank of Scotland mortgage with my brother and am investigating the option of him taking on the whole mortgage and extracting myself from it, to enable me to purchase a property with my fiance. The remaining mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
Questions that your conveyancing solicitor is likely to ask in relation to your Bank of Scotland Transfer of Equity
Please give the details of anyone to be added to the property title?
Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in conjunction with the above Bank of Scotland transfer of equity Advice :
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 premises
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 terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 conveyancer 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 varies based on the valuation 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 conveyancing solicitor 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.
Information contained within 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.