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Scottish Building Society

Recently asked questions relating to Scottish Building Society transfer of equity

  • Been looking at consumer blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously switching mortgage with Scottish Building Society
  • Have recently split up with my ex of twenty years. I'm now living with my mum and dad and she wishes to stay in the apartment and pay me off. What portion am I entitled to. Is it half of the equity after paying off the Scottish Building Society home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
  • I am completing a Scottish Building Society transfer of equity request and have come to the section regarding defaults etc. There are some debts that I have been reducing since 2008, in fact they no longer remain my credit records. Do I need to set these out?
  • How and when do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my sole name which is taking place at the same time as a refinancing via Scottish Building Society?
  • I currently have a joint Scottish Building Society mortgage with my brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is in the region 175k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
  • What if my application doesn't meet Scottish Building Society lending criteria for a transfer of equity?
  • My partner and I jointly own a property in Blaenavon . Home loan is with Scottish Building Society. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be easy to so?

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

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

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?

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

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 details of anyone to be extracted from the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

Information to consider in in addition 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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed 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 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 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 the conclusion 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 provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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