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Are you in need of a Transfer of Equity with a Bank of Scotland mortgage? Failing to check that a lawyer is on the Bank of Scotland list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

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

  • I jointly own a apartment in Ampthill , with a Bank of Scotland loan with my ex partner. Him and his fiance are going to buy me out. We had approval from Bank of Scotland to replace my name with hers. The transfer of equity needs to be done by a conveyancer for Bank of Scotland (apparently). In order to save fees can I do the Land Registry change?
  • Will I incur any charges for a Transfer of Equity where the current home loan is with Bank of Scotland?
  • I currently have a joint Bank of Scotland mortgage with my brother and am looking into the option of him taking on the whole mortgage and removing myself from it, to enable me to buy somewhere with my soon-to-be-wife. The outstanding mortgage is approx 300k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty due?
  • I acquired a property with a friend in 2008 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Bank of Scotland mortgage. There is a significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
  • What do I do if I am not happy with the conveyancing solicitor who did our transfer of equity transaction?
  • My Bank of Scotland home loan is in joint names with ex, who has agreed to be removed and put the house in my name alone. Bank of Scotland will permit the transfer of equity to me solely. Will Bank of Scotland write my boss to check my salary?
  • I am answering a Bank of Scotland transfer of equity application and have come to the section regarding debts etc. I do some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit rating. Do I need to reveal these?

Questions that your conveyancing solicitor could ask about your Bank of Scotland Transfer of Equity

If you are adding a person 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” Questionnaire.

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please inform us if you are providing any payment for the Transfer of Equity and to whom and specify the amount?

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

Is the transfer of equity subject to a court order? If yes please supply a copy

Please list all persons who occupy the property, their respective ages and relationships to you.

Important warnings to consider in in addition to the above Bank of Scotland transfer of equity information :

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 properties

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 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 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 the time of completion of the transfer of equity conveyancing.
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 provided 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.


Frequently asked questions relating to Bank of Scotland transfer of equity