Recently asked questions relating to Bank of Scotland transfer of equity
- Me and my former wife and I are searching for a quality conveyancing solicitor to assist in a transfer of equity and refinance with Bank of Scotland. I I am concerned about being overcharged and there are lots of conveyancing organisations who do transfer of equity conveyancing out there...who do I opt for?
- Is it possible to apply to borrow a further advance from Bank of Scotland as part of a Transfer of Equity?
- I am answering a Bank of Scotland transfer of equity form and have arrived at the part concerning debts etc. There are some debts that I have been discharging since 2009, I understand that they have long since disappeared from my credit score. Am I obliged to declare these?
- I already have a home loan with Bank of Scotland and am retaining my existing mortgaging but applying to have it in my name alone so my former husband will no longer be on the deeds. How long can it take for the application to be processed?
- My Bank of Scotland mortgage is in joint names with ex, who has agreed 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 call my boss to check my salary?
- As things stand I have a joint Bank of Scotland mortgage with my step-brother and am looking into the possibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The remaining mortgage is about 175k, and the property value is about 600k. Is this a transfer of equity? Is land tax due?
- I jointly own a property in Littleborough
, with a Bank of Scotland mortgage with my former partner. Him and his new partner are going to buy me out. We had consent from Bank of Scotland to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Bank of Scotland (supposedly). Is it possible for us to do the Land Registry change?
Sample of information requested in a conveyancing solicitor questionnaire concerning a Bank of Scotland Transfer of Equity
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Important warnings to consider in supplemental 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, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach 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 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 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 conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Bank of Scotland your property may be repossessed.
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 lawyer 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 should not be regarded as 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.