Examples of recent questions relating to Bank of Scotland transfer of equity

• Am I best advised stop the direct debit for my mortgage with Bank of Scotland once a date for my remortgage and transfer of equity has been set?
• I am considering mortgaging my house in Romsey does my lawyer have to be on the Bank of Scotland Solicitor panel. The conveyancing also involves a transfer of equity.
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Bank of Scotland?
• I jointly own a flat in Timperley , with a Bank of Scotland mortgage with my former partner. He and his new partner are going to buy me out. We had consent from Bank of Scotland to remove my name with hers. The transfer of equity has to be completed by a lawyer for Bank of Scotland (apparently). Can we deal with the Land Registry formalities?
• I intend to refinance my home in Winchelsea moving from Barclays to Bank of Scotland. The flat is jointly owned but intend for it to be in my sole name when I remortgage. My husband is OK with this and is willing to transfer equity but neither of us want to incur lawyer fees.
• In 2011 I bought a apartment without my partner's name on the ownership paperwork. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Bank of Scotland. Is it possible for me to add her name on the deeds?
• When it comes to transfer of equity conveyancing involving a remortgage with Bank of Scotland should I be charged value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee

Questions that your conveyancer is likely to ask regarding your Bank of Scotland Transfer of Equity

Caveats to be read in conjunction with the above Bank of Scotland transfer of equity Questions and Answers :

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 freeholder. If such terms are not adhered to 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 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.

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.

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.