LenderPanel.com

Find a Law Firm approved by
Bank of Scotland

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.

Top seven questions relating to Bank of Scotland transfer of equity

  • Is it possible to transfer the equity held in my property with my Bank of Scotland mortgage?
  • I am in the market for an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Bank of Scotland. I I am fearful of by bill escalating out of control and there are many conveyancing practices who do transfer of equity conveyancing to pick from...who do I opt for?
  • What are my options where I am dissatisfied with the conveyancer who carried out my transfer of equity transaction?
  • I am am in need of a conveyancing solicitor to deal with my transfer of equity. Bank of Scotland are dealing with the remortgage. I thought of asking my mortgage broker. I understand he may get a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
  • My brother and I got a joint mortgage with Bank of Scotland on a flat in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any concerns with Bank of Scotland with him being solely liable for the total loan as opposed to only part of it?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Bank of Scotland?
  • The financial adviser has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with Bank of Scotland - Surely it’s better to just use them?

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

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please provide the details of anyone to be removed from the title deeds?

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please clarify where you are providing any payment for the Transfer of Equity and to whom and give details of the amount?

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

Who will be responsible for the costs of the Transfer of Equity?

Important warnings to consider 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, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in violation 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 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 market value 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 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 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.


Frequently asked questions relating to Bank of Scotland transfer of equity