Transfer of Title Solicitors in Scotland

What a transfer of title is

A transfer of title changes who owns a property without a sale on the open market. In Scotland it is done by a disposition, which is the same type of deed used on a sale, signed by the current owners in favour of the new owners and registered in the Land Register of Scotland. Ownership only changes once that registration is complete.

In England this is often called a transfer of equity. Under Scots law, the equity is only part of the story: the deed, the mortgage, the tax and the survivorship clause in your title all need to be considered together.

When people transfer title

We handle transfers for all kinds of reasons, including:

• Adding a partner or spouse after marriage, a civil partnership or moving in together
• Removing a former partner when a relationship ends and one of you is keeping the home
• Buying out a co-owner, such as a sibling who inherited a share of a family home with you
• Gifting a home to your children, or putting a property into the names of the next generation
• Moving a property into or out of a trust, alongside advice from a financial or tax adviser

The mortgage comes first

If there is a mortgage over the property, nothing can be transferred without the lender's consent. The lender will usually want:

• the incoming owner to be assessed and added to the loan, or
• the remaining owner to show they can afford the loan alone, often by taking out a new mortgage

We deal with the lender for you. Where a new mortgage is needed, we can act on the remortgage and the transfer together, so there is one completion date and one set of registrations.

The tax questions

Transfers between family members are where people are most often caught out by tax, so we check each of these before you sign.

Land and Buildings Transaction Tax. LBTT is charged on the chargeable consideration, which includes cash paid and any share of an existing mortgage that the incoming owner takes on. If Ben transfers a half share to Holly and she becomes liable for half of a £180,000 mortgage, the consideration is £90,000, which is below the nil-rate band. If Holly also pays Ben £60,000 in cash, the consideration becomes £150,000 and £100 of LBTT is due. Transfers between spouses or civil partners under a court order or agreement on divorce, dissolution or separation are exempt.

The Additional Dwelling Supplement. If the person receiving a share already owns another home, the 8% supplement can apply where the consideration is £40,000 or more. We check this at the start, because it can apply to transfers where people would not expect it.

Capital Gains Tax and Inheritance Tax. Transfers between spouses and civil partners who live together are treated as no gain and no loss. Since 6 April 2023, separating couples have until the end of the third tax year after they stop living together to make transfers on that basis, and without a time limit where the transfer is part of a formal divorce agreement. Gifts to children can have Capital Gains Tax consequences if the property is not your main home, and a gift only falls outside your estate for Inheritance Tax if you survive for seven years. If you give your home away but carry on living in it, the seven-year rule does not help, because the gift is treated as one with a reservation of benefit. We point out where you need tax advice, and we can work with your accountant.

Survivorship destinations

Many Scottish titles contain a survivorship destination, which means the property is held "to A and B and the survivor". When one owner dies, their share passes automatically to the other, whatever their will says. A transfer of title is a good moment to check whether the destination in your title still reflects what you want. Since the Succession (Scotland) Act 2016, divorce or dissolution generally cancels a destination in favour of the former spouse or civil partner, but separation on its own does not. If you have separated, both the title and your will need to be looked at.

What happens next

1. We check the title and your lender's position, and confirm the fee and outlays in writing.
2. We prepare the disposition and any mortgage documents, and explain them to everyone signing.
3. We deal with the lender's consent or the new mortgage.
4. We submit any LBTT return to Revenue Scotland and register the disposition in the Land Register.
5. We send you confirmation once the title sheet shows the new owners.

Our fixed fee for a transfer of title starts from £600 plus VAT. Registers of Scotland charges a registration fee for the new disposition on a scale based on the price or value, and there is a further £80 fee if a new standard security is registered. Everything is set out in your quote before you instruct us.

Separating and not sure where to start?

If the transfer is part of a separation, the property is usually one piece of a wider financial agreement. Our colleagues in family law at Simplicity Legal can advise on the agreement itself, and we then carry out the conveyancing once the terms are settled.