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Are you in need of a Transfer of Equity with a Scottish Building Society mortgage? Failing to check that a lawyer is on the Scottish Building Society list of approved solicitors can put your transfer at risk of delay or failure. Only LenderPanel.com provides a subset of authorised conveyancers for over 130 lenders.

Top seven questions relating to Scottish Building Society transfer of equity

  • Law month I split up with my wife of 18 years. I'm now back with my parents again and she wishes to remain in the property and pay me off. What percentage am I entitled to. Is it 50% of the equity after discharging the Scottish Building Society home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting I am not being taken advantage of
  • My brother and I got a joint mortgage with Scottish Building Society on a apartment a couple of years ago. I am now thinking of purchasing a property by myself and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Would there be any potential concerns with Scottish Building Society with him being responsible for the total mortgage rather than only part of it?
  • I already have a mortgage with Scottish Building Society and am keeping my existing mortgaging but applying to have have the equity transferred to my sole name so my ex will come off the mortgage. How long does the whole transfer of equity process take?
  • Scottish Building Society have today agreed I can take over the home loan on the house. I previously applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
  • I am hoping to remortgage my home in Ampthill moving from Coventry BS to Scottish Building Society. The home is currently in joint names but intend for it to be in my name only when I transfer. My wife has verbally consented to this and is happy to transfer equity but neither of us want to incur lawyer charges.
  • Me and my former partner and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Scottish Building Society. I want to avoid being ripped off and there are lots of conveyancing practices who do transfer of equity conveyancing to choose from...who's the best?
  • Me and my partner co-own a house in Winchelsea . Home loan is with Scottish Building Society. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be simple?

Information that may be required from your lawyer may ask about your Scottish Building Society Transfer of Equity

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

Please give the name(s) and addresse(s) of anyone to be extracted from the property title?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Has one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please provide the details of anyone who jointly owns the premises with you?

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

Caveats to be read in supporting 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 properties

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach 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 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.
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 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 conveyancer 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