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Scottish Building Society

Scottish Building Society transfer of equity: q and a’s

  • I am filling out a Scottish Building Society transfer of equity form and have come to the section regarding debts etc. I do some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit score. Must I set these out?
  • How and when do I incur stamp duty payable for the transfer of equity in my house in my sole name which is happening at the same time as a switching mortgage with Scottish Building Society?
  • My ex are seeking to get a lawyer in place for a remortgage with Scottish Building Society. Transfer of Equity conveyancing is also necessaryI have used the different comparison based websites and the results are from all over the country. Is it important to instruct a conveyancing solicitor local to us?
  • After 5 years separated I have decided to transfer my share of the house to my husband who is refinancing with Scottish Building Society. Can a transfer of equity be completed inside one month?
  • I got my Decree Absolute in 2010. Foolishly I never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Scottish Building Society is willing to transfer the property and loan in my name (financial checks done). Does my ex need a solicitor?
  • I am in the process of remortgaging my home in Rye does my lawyer have to be on the Scottish Building Society Conveyancing panel. The conveyancing also involves a transfer of equity.
  • What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Scottish Building Society - and have been quoted £350 plus VAT by Scottish Building Society's approved conveyancing solicitor, Have I been over quoted?

Questions that your lawyer may ask in relation to your Scottish Building Society Transfer of Equity

Would you like us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

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

Please provide the details of anyone to be extracted from the title deeds?

Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Please give the details of anyone to be added to the property title?

Caveats to be read in supplemental the above Scottish Building Society transfer of equity Info :

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 Scottish Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, 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 your covenants under the lease. This could trigger 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 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 valuation of the property at finalisation of the transfer of equity transaction.
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.


Frequently asked questions relating to Scottish Building Society transfer of equity