Bank of Scotland Private transfer of equity example support desk enquires

• I am are seeking to find an affordable conveyancing lawyer to help me sell in a transfer of equity and refinance with Bank of Scotland Private. I want to avoid being ripped off and there's lots of conveyancing organisations who do transfer of equity conveyancing out there...how do I know which one to appoint?
• My partner and myself equally own a buy to let. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name in order reduce our tax on rental income. If Bank of Scotland Private are fine with this the legal fees are not high. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
• Is it sensible to cancel my mortgage payments with Bank of Scotland Private as soon as a date for my remortgage and transfer of equity has been set?
• I plan to refinance my maisonette in Miles Platting moving from Natwest to Bank of Scotland Private. The flat is jointly owned but intend for it to be in my sole name as and when I switch. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancer charges.
• What if my application doesn't meet Bank of Scotland Private lending criteria for a transfer of equity?
• I am planning on removing a name from a joint mortgage and the Bank of Scotland Private require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Witham lawyer to deal with the transfer of equity? They need to be on the Bank of Scotland Private conveyancing panel.
• I am thinking of refinancing my house in Timperley does my lawyer have to be on the Bank of Scotland Private Conveyancing panel. The conveyancing also involves a transfer of equity.

Examples of information requested in a lawyer questionnaire concerning a Bank of Scotland Private Transfer of Equity

Caveats to be read in in addition to the above Bank of Scotland Private 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 Private conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

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 strictly observed 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 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 lawyer will check with Bank of Scotland Private 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 Private 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 varies based on the market value of the property at the time of completion of the transfer of equity conveyancing.

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