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RBS - Direct Line

Top seven questions relating to RBS - Direct Line transfer of equity

  • I plan to refinance my apartment in Dunnington switching from HSBC to RBS - Direct Line. The maisonette is jointly owned but I would like it to be in my name only once I switch. My husband is OK with this and is happy to sign a form but neither of us want to get a second lawyer involved.
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my RBS - Direct Line mortgage account?
  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with RBS - Direct Line?
  • When it comes to transfer of equity conveyancing involving refinance with RBS - Direct Line should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My brother and I got a joint mortgage with RBS - Direct Line on a flat in 2013. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Would there be any potential problem with RBS - Direct Line with him being responsible for the total mortgage as opposed to only part of it?
  • RBS - Direct Line yesterday agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but is this a transfer of ownership of the house on top?
  • Have recently separated from my wife of thirty years. I'm now back with my mum and dad and she wishes to stay in the flat and buy me out. What percentage do I get. Is it half of the equity after redeeming the mortgage with RBS - Direct Line? I assume proper valuations are necessary but I really need ensure that I'm getting the best deal

Examples of questions in a lawyer form relating to RBS - Direct Line Transfer of Equity

Has consent been obtained from RBS - Direct Line to the proposed transfer of equity?

Please give the name(s) and addresse(s) of anyone to be extracted from the property title?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

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?

Who will be responsible for the costs of the Transfer of Equity?

Important warnings to consider in further to the above RBS - Direct Line transfer of equity Info :

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

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 terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 lawyer 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 time of completion 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 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 conveyancer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided 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.


Frequently asked questions relating to RBS - Direct Line transfer of equity