Questions and answers: Bank of Scotland transfer of equity

• I bought a flat with my cousin six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is taken 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?
• I own a flat in Miles Platting , with a Bank of Scotland mortgage with my former husband. He and his new partner are going to buy me out. We had approval from Bank of Scotland to replace my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Bank of Scotland (apparently). Is it possible for us to deal with the Land Registry formalities?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Bank of Scotland?
• When it comes to transfer of equity conveyancing involving a remortgage with Bank of Scotland should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• I am transferring my equity in house in Birmingham to my co-owners husband, they are reapplying to Bank of Scotland. We are debating as to who should pay the fees for the transfer of equity. Is this usually shared or is one party obliged to cover the charges for?
• My Bank of Scotland mortgage we jointly entered into with ex, who is agreeable to come off the deeds and let me have the property. Bank of Scotland have consented to the transfer of equity to me solely. Do Bank of Scotland get in touch with my boss to verify my salary?
• I already have a home loan with Bank of Scotland and am keeping my current mortgaging but seeking to have it in my name alone so my former partner won't be on it any longer. How long can it take for the application to be processed?

Information that may be required from your conveyancer may ask regarding your Bank of Scotland Transfer of Equity

Caveats to be read in supplemental 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 titles

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 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 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 varies based 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 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 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.