Sample questions relating to Bank of Scotland transfer of equity
- I currently have a joint Bank of Scotland mortgage with my cousin and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my partner. The outstanding mortgage is approx 300k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
- What can I do where I am not happy with the conveyancing solicitor who did our transfer of equity conveyancing?
- My former husband are looking to get a conveyancing solicitor in place for a new mortgage with Bank of Scotland. Transfer of Equity conveyancing is also neededI have used the different comparison based tools and the results are from all over England and Wales. How necessary is it to appoint a conveyancer local to us?
- The financial adviser has suggested using their conveyancing solicitor for my Transfer of Equity plus remortgage with Bank of Scotland - won’t it be better to just instruct them?
- I am in the process of removing a name from a joint mortgage and the Bank of Scotland require me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Ampthill lawyer to deal with the transfer of equity? They need to be on the Bank of Scotland conveyancing panel.
- I purchased a flat with a friend in 2009 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 significant difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- I recently purchased a house without my fiance’s name on the title. My conveyancing solicitor said it is due to the fact that she was not in the loan offer with Bank of Scotland. Is it possible for me to put her name on the documents at HMLR?
Sample of questions in a conveyancing solicitor form relating to Bank of Scotland Transfer of Equity
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Please give the details of those who jointly own the property with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
General Advice to 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
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 is dependent on the market value of the property at the conclusion of the transfer of equity conveyancing.
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 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 lawyer 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.