Top seven questions relating to RBS - Direct Line transfer of equity
- My ex-fiance and I are searching for an affordable conveyancing lawyer to assist in a transfer of equity and refinance with RBS - Direct Line. I really don't want to get ripped off and there are many conveyancing firms who do transfer of equity conveyancing out there...who's the best?
- I acquired a flat with a friend six years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the RBS - Direct Line mortgage. There is a significant difference between the value the RBS - Direct Line say and what the property would sell for currently. Can you offer any advice?
- My wife and myself have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order reduce our tax on the letting income. Assuming RBS - Direct Line are content with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents would I lose my CGT relief.
- Been looking at online blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time refinancing with RBS - Direct Line
- Can you tell me how to have a person removed from the title documents to a house where the mortgage is with RBS - Direct Line
- I am hoping to refinance my home in Ampthill moving from Godiva Mortgages to RBS - Direct Line. The maisonette is currently in joint names but I would like it to be in my sole name when I remortgage. My wife has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancer fees.
- At what point do I pay the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is taking place at the same time as a remortgage with RBS - Direct Line?
Information that may be required from your lawyer could ask in relation to your RBS - Direct Line Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Has consent been obtained from RBS - Direct Line to the proposed transfer of equity?
Please provide the details of anyone to be extracted from the title deeds?
Is it the case that one of the registered proprietors died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Information to consider in supporting the above RBS - Direct Line 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 RBS - Direct Line conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
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 lawyer 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.
Content on 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.