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Scottish Building Society

Recently asked questions relating to Scottish Building Society transfer of equity

  • Me and a friend got a joint mortgage with Scottish Building Society on a flat a couple of years ago. I am now looking to get a apartment on my own and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Is there likely to be any issue with Scottish Building Society with him being on the hook for the total loan as opposed to only part of it?
  • I already have a mortgage with Scottish Building Society and am retaining my current mortgaging but applying to have it in my sole name so my ex won't be on it any longer. How long does the whole transfer of equity process take?
  • I am completing a Scottish Building Society transfer of equity form and have arrived at the section concerning defaults etc. I do some debts that I have been paying off for a number of years, in fact they no longer remain my credit records. Am I obliged to declare these?
  • My decree absolute is through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Scottish Building Society home loan. I have called Scottish Building Society for the transfer of equity forms. What happens next?
  • As things stand I have a joint Scottish Building Society mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is approx 300k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
  • How much the typical conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Scottish Building Society - and have been quoted Four Hundred pounds excluding VAT by Scottish Building Society's approved conveyancing solicitor, Is this is a good price or not?
  • I am trying to find a conveyancing solicitor to undertake my transfer of equity. Scottish Building Society are dealing with the remortgage. I considered asking my mortgage broker. I understand he may receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?

Sample of questions in a conveyancer form concerning a Scottish Building Society Transfer of Equity

Has one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Who will be responsible for the costs of the Transfer of Equity?

Please list all persons who occupy the property, their respective ages and relationships to you.

Please provide the details of anyone to be added to the title deeds?

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 inform us if you are providing any payment for the Transfer of Equity and to whom and disclose the amount?

Important warnings to consider in supplemental the above Scottish Building Society transfer of equity Advice :

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 Scottish Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 Scottish Building Society 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 Scottish Building Society 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 the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Scottish Building Society.

Preparing the Transfer of Equity with a Scottish Building Society 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 Scottish Building Society 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.


Frequently asked questions relating to Scottish Building Society transfer of equity