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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.

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

  • I understand we would need at least AP1 and TR1. Is this true?
  • My Scottish Building Society mortgage we jointly entered into with ex, who has agreed to be removed and put the house in my name alone. Scottish Building Society have consented to the transfer of equity to my individual name. Do Scottish Building Society contact my employer to confirm my salary?
  • Scottish Building Society have just 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 as well?
  • Can you tell me how to have a person removed from the deeds to a house where the mortgage is with Scottish Building Society
  • At what stage do I pay stamp duty chargeable for the transfer of equity in my house in my sole name which is taking place at the same time as a refinancing with Scottish Building Society?
  • How do I go about adding or subtracting names (transfer of equity) to or from my Scottish Building Society mortgage account?
  • I purchased a house with a friend in 2008 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Scottish Building Society mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Information that may be required from your conveyancing solicitor may ask in relation to your Scottish Building Society Transfer of Equity

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

Please give the name(s) and addresse(s) of anyone to be added to the title deeds?

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

Please provide a copy of your National Insurance Number?

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

Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same

Information to consider 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 premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 is dependent 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 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.

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