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Questions and answers: Bank of Scotland Private transfer of equity

  • Am I best advised stop the direct debit for my mortgage with Bank of Scotland Private once a date for my remortgage and transfer of equity has been agreed?
  • How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is taking place simultaneously with a refinancing with Bank of Scotland Private?
  • What do I do if I am dissatisfied with the lawyer who handled our transfer of equity conveyancing?
  • Have recently separated from my wife of 18 years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What percentage do I get. Is it 50% of the equity after discharging the Bank of Scotland Private home loan? I assume proper valuations are required but I really need ensure that I'm getting the best deal
  • My wife and I have 50:50 shares in a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name in order mitigate tax on rental income. Assuming Bank of Scotland Private are content with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • Me and my former partner and I are in the market for a quality conveyancing solicitor to help me sell in a transfer of equity and remortgage with Bank of Scotland Private. I want to avoid being ripped off but with various conveyancing organisations who do transfer of equity conveyancing to choose from...who's the best?
  • I recently bought a house without my fiance’s name on the deeds. My conveyancer said it is due to the fact that she is not in the loan offer with Bank of Scotland Private. Is it possible for me to put her name on the deeds?

Questions that your conveyancing solicitor is likely to ask regarding your Bank of Scotland Private Transfer of Equity

Can you give the name(s) and addresse(s) of those who jointly own the premises with you?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Where you 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?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

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

General Advice to read in supplemental the above Bank of Scotland Private transfer of equity information :

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 Private conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 lawyer will check with Bank of Scotland Private 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 Private 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 valuation of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Bank of Scotland Private your property may be repossessed.

Preparing the Transfer of Equity with a Bank of Scotland Private 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 Private 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 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.

Frequently asked questions relating to Bank of Scotland Private transfer of equity