Sample questions relating to Bank of Scotland transfer of equity

• I co-own a apartment in Dunnington , with a Bank of Scotland loan with my ex partner. 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 needs to be completed by a lawyer for Bank of Scotland (apparently). Is it possible for us to deal with the Land Registry formalities?
• I intend to remortgage my maisonette in Sedgefield moving from Lloyds TSB to Bank of Scotland. The home is jointly owned but propose for it to be in my sole name as and when I switch. My husband has agreed to this and is happy to sign a form but neither of us want to get a second lawyer involved.
• My father passed away early last year leaving a unencumbered property to me and my half brother 50:50. Having continues to reside at the property, there was a clause in the will saying the housecould not be sold for 24 months following her death so he could remain there for a while. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to buy my share?
• My decree absolute has gone through as is the consent order. Now I need to address the transfer of equity on title deeds and the Bank of Scotland mortgage. I have called Bank of Scotland for the transfer of equity application. What happens next?
• What if my application doesn't meet Bank of Scotland lending criteria for a transfer of equity?
• Law month I split up with my wife of thirty years. I'm now back with my mum and dad and she wants to stay in the property and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the Bank of Scotland home loan? I assume proper valuations are required but I really need ensure that I'm getting the best deal
• 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?

Information that may be required from your conveyancer is likely to ask in relation to your Bank of Scotland Transfer of Equity

General Advice to read in supporting the above Bank of Scotland transfer of equity Info :

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 require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in breach of 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 the time of completion 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 conveyancer 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.