Questions and answers: RBS - Direct Line transfer of equity
- As things stand I have a joint RBS - Direct Line mortgage with my step-brother and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase a place with my fiance. The outstanding mortgage is in the region 250k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty due?
- My ex-wife and I are in the market for a value for money conveyancing lawyer to help me sell in a transfer of equity and remortgage with RBS - Direct Line. I I am concerned about appointing the wrong one but with so many conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
- I am looking for a lawyer to deal with my transfer of equity. RBS - Direct Line have been approached for a remortgage. I considered asking my mortgage broker. I am lead to believe he may get a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?
- Am I best advised stop the direct debit for my mortgage with RBS - Direct Line as soon as a date for my remortgage and transfer of equity has been agreed?
- My decree absolute has gone through as is the consent order. Now I have to sort out the transfer of equity at the land registry and the RBS - Direct Line mortgage. I have asked RBS - Direct Line for the transfer of equity forms. What do I do now?
- Have recently separated from my ex of twenty years. I'm now back with my mum and dad and she wants to remain in the property and pay me off. What portion do I get. Is it half of the equity after paying off the mortgage with RBS - Direct Line? I assume proper valuations are necessary but I really need to be confident that I'm getting I am not being walked over
- My mother passed away seven months ago leaving a loan-free bungalow to me and my brother equally. He has always lived in the property, there was a clause in the will saying the premisescould not be sold for three years following her passing so he could remain there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the usual way to acquire my half from me?
Questions that your lawyer is likely to ask regarding your RBS - Direct Line Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Will there be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Who will be responsible for the costs of the Transfer of Equity?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Has one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider in conjunction with the above RBS - Direct Line transfer of equity information :
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 RBS - Direct Line conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 as a result of 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 RBS - Direct Line 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 RBS - Direct Line 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 conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with RBS - Direct Line.
Preparing the Transfer of Equity with a RBS - Direct Line 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 RBS - Direct Line 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.
Information contained within this webpage is for general information and only applies to England and Wales. It does not constitute 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.
