Examples of recent questions relating to Bank of Scotland transfer of equity

• I am answering a Bank of Scotland transfer of equity request and have come to the section concerning debts etc. I do some debts that I have been paying off since 2007, in fact they have long since disappeared from my credit rating. Am I obliged to reveal these?
• My former husband are planning to get a conveyancing solicitor lined up for a refinance with Bank of Scotland. Transfer of Equity conveyancing is also neededI have used the different comparison based services and the results are from all over England and Wales. How necessary is it to instruct a lawyer local to us?
• In 2009 I purchased a flat without my fiance’s name on the title. My lawyer advised it is because she is not in the mortgage with Bank of Scotland. Is it possible for me to put her name on the title?
• I got divorced three years ago. I simply never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Bank of Scotland is willing to transfer the property and loan in my name (affordability checks done). Does she need any legal representation?
• Is it possible to apply to borrow a further advance from Bank of Scotland as part of a Transfer of Equity?
• I understand we would need at least AP1 and TR1. Is this true?
• I already have a home loan with Bank of Scotland and am retaining my existing mortgaging but seeking to have have the equity transferred to my name only so my former partner won't be on it any longer. How long do Bank of Scotland take to process the application?

Examples of questions in a conveyancing solicitor form concerning a Bank of Scotland Transfer of Equity

General Advice to read in further to the above Bank of Scotland 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 Bank of Scotland 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 require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation 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 pursuant to 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 lawyer will check with Bank of Scotland 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 Bank of Scotland 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 finalisation of the transfer of equity transaction.

Preparing the Transfer of Equity with a Bank of Scotland 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 Bank of Scotland 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 lawyer 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.