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Scottish Building Society

Top seven questions relating to Scottish Building Society transfer of equity

  • My brother and I got a joint mortgage with Scottish Building Society on a property a couple of years ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Would there be any potential concerns with Scottish Building Society with him being solely liable for the total mortgage rather than only half of it?
  • What are my options where I am unhappy with the conveyancing solicitor who carried out my transfer of equity conveyancing?
  • Scottish Building Society have just agreed I can take over the home loan on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry in addition?
  • My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. If Scottish Building Society are content with this the legal fees are inexpensive. What are the implications when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
  • Can I apply to borrow a further advance from Scottish Building Society as part of a Transfer of Equity?
  • I purchased a property with my brother five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Scottish Building Society mortgage. There is a significant difference between the value the Scottish Building Society hold and what the property would sell for currently. Can you offer any advice?
  • Have recently separated from my ex of 18 years. I'm now living with my mum and dad and she wants to remain in the flat and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with Scottish Building Society? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being walked over

Examples of information requested in a conveyancing solicitor form concerning a Scottish Building Society Transfer of Equity

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

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 provide the name(s) and addresse(s) of anyone to be removed from the property title?

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

Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

Has consent been obtained from Scottish Building Society to the proposed transfer of equity?

Information to consider in further to the above Scottish Building Society 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 Scottish Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under 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 conveyancing solicitor 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Scottish Building Society your property may be repossessed.

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 conveyancer 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