Questions and answers: Scottish Building Society transfer of equity

• What if my application doesn't meet Scottish Building Society lending criteria for a transfer of equity?
• I own a flat in Witham , with a Scottish Building Society loan with my former husband. Him and his new partner are going to buy me out. We had approval from Scottish Building Society to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for Scottish Building Society (apparently). Can we deal with the Land Registry formalities?
• How much the typical legal fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Scottish Building Society - and have been quoted £350 excluding VAT by Scottish Building Society's appointed conveyancing solicitor, Is this is a good price or not?
• Have recently split up with my partner of 18 years. I'm now living with my parents again and she wants to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the Scottish Building Society home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with Scottish Building Society?
• Can I apply to request a further advance from Scottish Building Society as part of a Transfer of Equity?
• My current home loan is with Scottish Building Society. Can I transfer equity to someone under eighteen years old?

Examples of questions in a conveyancer questionnaire relating to Scottish Building Society Transfer of Equity

Caveats to be read in conjunction with the above Scottish Building Society 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 Scottish Building Society conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 breach 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 cases, 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 conveyancing solicitor 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 conclusion of the transfer of equity conveyancing.

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.