Frequently asked questions relating to Scottish Building Society transfer of equity
- I intend to remortgage my home in Friern Barnet
changing from Yorkshire Bank Home Loans to Scottish Building Society. The maisonette is jointly owned but I would like it to be in my sole name as and when I switch. My former partner is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
- Can I transfer the equity held in my property with my Scottish Building Society home loan?
- Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Scottish Building Society?
- I am in the market for a dependable conveyancing solicitor to assist in a transfer of equity and remortgage with Scottish Building Society. I I am concerned about appointing the wrong one and there's many conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?
- Law month I split up with my partner of twenty years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with Scottish Building Society? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being walked over
- My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity on title deeds and the Scottish Building Society mortgage. I have asked Scottish Building Society for the transfer of equity forms. What happens next?
- In 2011 I bought a apartment without my fiance’s name on the title. My lawyer advised it is due to the fact that she is not in the mortgage with Scottish Building Society. I'm wondering is there any way that I can put her name on the title?
Examples of information requested in a conveyancer form relating to Scottish Building Society Transfer of Equity
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
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?
Please list all persons who occupy the property, their respective ages and relationships to you.
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
General Advice to read in conjunction with the above Scottish Building Society transfer of equity information :
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 have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of 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 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 conveyancer 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 market value of the property at the time of completion 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 lawyer 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 conveyancing solicitor 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 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.