Examples of recent questions relating to Scottish Building Society transfer of equity

• My existing mortgage is with Scottish Building Society. Can I transfer equity to someone who is not yet 18 years old?
• My Scottish Building Society mortgage we jointly entered into with ex, he has agreed to be removed and let me have the property. Scottish Building Society will permit the transfer of equity to me solely. Will Scottish Building Society contact my boss to check my salary?
• I am filling out a Scottish Building Society transfer of equity form and have arrived at the part concerning defaults etc. I do some debts that I have been paying off since 2009, I understand that they have long since disappeared from my credit records. Do I need to reveal these?
• Taking into account that we have been 3 years estranged I have decided to transfer my share of our flat to my husband who is re-mortgaging with Scottish Building Society. Could this transfer of equity be completed inside one month?
• At what stage do I cover the costs of stamp duty payable for the transfer of equity in my home in my name alone which is taking place simultaneously with a refinancing with Scottish Building Society?
• I got my Decree Absolute four years ago. I simply never dealt with the transfer ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Scottish Building Society is willing to transfer the full equity in my name (affordability checks done). Does she need a solicitor?
• Law week I split up with my ex of 18 years. I'm now back with my parents again and she wishes to remain in the property and pay me off. What portion do I get. Is it half of the equity after paying off the mortgage with Scottish Building Society? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to

Sample of information requested in a conveyancer questionnaire relating to Scottish Building Society Transfer of Equity

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

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

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 terms are not adhered to you may be in breach of 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 lawyer 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 market value of the property at the time of completion of the transfer of equity transaction.

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 conveyancing solicitor 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 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.