Top seven questions relating to Bank of Scotland transfer of equity
- What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Bank of Scotland - and have been quoted £350 plus VAT by Bank of Scotland's approved conveyancer, Have I been over quoted?
- What do I do if I am not happy with the conveyancing solicitor who undertook our transfer of equity conveyancing?
- Am I best advised stop the direct debit for my mortgage with Bank of Scotland as soon as a date for my remortgage and transfer of equity has been set?
- When it comes to transfer of equity conveyancing involving refinance with Bank of Scotland should I be paying 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
- My wife and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name in order reduce our tax on the letting income. If Bank of Scotland are content with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
- I already have a home loan with Bank of Scotland and am retaining my existing mortgaging but applying to have it in my sole name so my former husband will no longer be on the title. How long can it take for the application to be processed?
- I am hoping to remortgage my home in Friern Barnet
changing from Lloyds TSB to Bank of Scotland. The home is jointly owned but intend for it to be in my sole name once I switch. My former partner is OK with this and is willing to transfer equity but neither of us want to incur conveyancer fees.
Examples of questions in a lawyer questionnaire relating to Bank of Scotland Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Has consent been obtained from Bank of Scotland to the proposed transfer of equity?
Please provide the details of anyone to be added to the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please let us know where you are making any payment for the Transfer of Equity and to whom and specify the amount?
Information to consider in supporting the above Bank of Scotland transfer of equity Questions and Answers :
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 premises
If your property is leasehold, 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 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.
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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bank of Scotland.
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 conveyancer 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 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.