Common questions relating to Bank of Scotland transfer of equity

• I am are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Bank of Scotland. I want to avoid being ripped off and there's plenty conveyancing solicitors who do transfer of equity conveyancing to pick from...how do I know which one to select?
• I currently have a joint Bank of Scotland mortgage with my brother and am looking into the possibility of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is about 175k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax involved?
• I am trying to find a conveyancer to handle my transfer of equity. Bank of Scotland are dealing with the remortgage. I thought of asking my mortgage broker. I understand he may get a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?
• My Bank of Scotland home loan we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Bank of Scotland will permit the transfer of equity to my individual name. Will Bank of Scotland write my employer to confirm my salary?
• My former husband are looking to get a conveyancer lined up for a remortgage with Bank of Scotland. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over the country. How necessary is it to instruct a lawyer local to us?
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with Bank of Scotland?
• Can you tell me how to have someone removed off the title documents to a house if the home loan is with Bank of Scotland

Sample of information requested in a conveyancing solicitor questionnaire concerning a Bank of Scotland Transfer of Equity

Important warnings to consider in supporting the above Bank of Scotland transfer of equity Questions and Answers :

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 Bank of Scotland conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in 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 your covenants under the lease. This could potentially result in 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 market value of the property at the time of completion 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 conveyancing solicitor 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 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.