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Scottish Building Society

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

  • My current home loan is with Scottish Building Society. Can I transfer equity to someone who is not yet eighteen years old?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • Having been 4 years separated I have made the decision to give up my share of the apartment to my husband who is refinancing with Scottish Building Society. Could this transfer of equity be completed in one month?
  • Have recently split up with my partner of twenty years. I'm now living with my parents again and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with Scottish Building Society? I assume proper valuations are required but I would like ensure that I'm getting the best deal
  • I am in the process of removing a name from a joint mortgage and the Scottish Building Society need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Blaenavon lawyer to deal with the transfer of equity? They need to be on the Scottish Building Society conveyancing panel.
  • I am selling my equity in apartment in Woodside to my co-owners fiance, they are reapplying to Scottish Building Society. We are haggling as to who must pay the legal bill for the transfer of equity. Is this normally shared or is one party obliged to cover the legal bill?
  • I am filling out a Scottish Building Society transfer of equity application and have arrived at the part regarding defaults etc. There are some debts that I have been reducing over a long period, I understand that they no longer remain my credit score. Must I set these out?

Questions that your lawyer is likely to ask about your Scottish Building Society Transfer of Equity

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

Is it the case that one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Where you are adding someone 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” Questionnaire.

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

Please let us know where you are making any payment for the Transfer of Equity and to whom and specify any such sums?

If 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?

Important warnings to consider in supporting the above Scottish Building Society transfer of equity Advice :

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

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach 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 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 valuation of the property at the time of completion 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 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 conveyancing solicitor 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 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