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

• Have recently split up with my wife of 18 years. I'm now living with my mum and dad and she wants to stay in the property and pay me off. What percentage do I get. Is it half of the equity after paying off the mortgage with Bank of Scotland? I assume proper valuations are required but I really need ensure that I'm getting the best deal
• I purchased a property with a friend in 2009 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Bank of Scotland mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with Bank of Scotland
• My financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Bank of Scotland - Surely it’s easier to just use them?
• I am in the market for a dependable conveyancing solicitor to help me sell in a transfer of equity and refinance with Bank of Scotland. I I am concerned about by bill escalating out of control and there are so many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the HMLR and the Bank of Scotland home loan. I have contacted Bank of Scotland for the transfer of equity forms. What do I do now?
• I intend to refinance my maisonette in Dunnington moving from HSBC to Bank of Scotland. The maisonette is jointly owned but intend for it to be in my name only as and when I transfer. My former partner is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.

Examples of questions in a lawyer form relating to Bank of Scotland Transfer of Equity

General Advice to read in in addition to the above Bank of Scotland transfer of equity information :

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 titles

If your property is 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 the lease. This could potentially result in 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 lawyer 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.

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 conveyancer 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.