Top seven questions relating to Bank of Scotland transfer of equity
- My partner and I jointly own a property in Dunnington
. Home loan is with Bank of Scotland. I wish to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be straightforward?
- I jointly own a property in Rye
, with a Bank of Scotland loan with my former husband. He and his new partner are going to buy me out. We had the go ahead from Bank of Scotland to substitute my name with hers. The transfer of equity has to be done by a lawyer for Bank of Scotland (apparently). Is it possible for us to deal with the Land Registry change?
- My fiance and myself equally own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to mitigate tax on rental income. Assuming Bank of Scotland are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
- My Bank of Scotland mortgage is in joint names with ex, who is agreeable to come off the deeds and let me have the property. Bank of Scotland will permit the transfer of equity to me solely. Will Bank of Scotland contact my boss to confirm my salary?
- Me and a friend got a joint mortgage with Bank of Scotland on a flat about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed a figure what happens next? Would there be any potential issue with Bank of Scotland with him being solely liable for the total loan as opposed to only half of it?
- I acquired a flat with my cousin in 2010 Since then, we have both got married. We are now looking to do a transfer of equity so my name is removed the Bank of Scotland mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Online reading suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and simultaneously switching mortgage with Bank of Scotland
Information that may be required from your conveyancing solicitor is likely to ask about your Bank of Scotland Transfer of Equity
Can you provide the details of those who jointly own the property with you?
Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Is it the case that one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
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 clarify where you are providing any payment for the Transfer of Equity and to whom and disclose the amount?
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?
Important warnings to consider in further to 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 titles
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of 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 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 is dependent on the valuation of the property at the time of completion 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 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.