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Scottish Building Society

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

  • At what point do I incur stamp duty due for the transfer of equity in my home in my sole name which is happening at the same time as a refinancing with Scottish Building Society?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Scottish Building Society?
  • My current mortgage is with Scottish Building Society. Can I transfer equity to someone under 18 years old?
  • I am planning on removing a name from a joint mortgage and the Scottish Building Society need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Dunnington conveyancer to deal with the transfer of equity? They need to be on the Scottish Building Society conveyancing panel.
  • I am disposing of my equity in house in Warwick to the other co-owners husband, they are reapplying to Scottish Building Society. We are debating as to who should cover the fees for the transfer of equity. Should this be shared or is one party liable for the fees for?
  • I currently have a joint Scottish Building Society mortgage with my cousin and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is in the region 300k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
  • I plan to refinance my home in Crabtree moving from Coventry BS to Scottish Building Society. The maisonette is currently in joint names but wish for it to be in my name only when I remortgage. My wife is OK with this and is happy to sign a form but neither of us want to get a second conveyancer involved.

Examples of questions in a lawyer questionnaire concerning a Scottish Building Society Transfer of Equity

Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same

Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?

Who will be responsible for the costs of the Transfer of Equity?

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

Please provide a copy of your National Insurance Number?

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

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 titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with 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 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 is dependent on the market value of the property at the conclusion 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.

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