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

• I recently purchased a property without my fiance’s name on the ownership paperwork. My lawyer claimed it is due to the fact that she was not in the mortgage with RBS - Direct Line. Is it possible for me to put her name on the deeds?
• Is it sensible to stop the direct debit for my mortgage with RBS - Direct Line once a date for my remortgage and transfer of equity has been agreed?
• Is it possible to transfer the equity held in my property with my RBS - Direct Line home loan?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with RBS - Direct Line?
• Is stamp duty payable when it comes to an transfer of equity with a mortgage with RBS - Direct Line?
• I am filling out a RBS - Direct Line transfer of equity application and have arrived at the questions regarding defaults etc. I do some debts that I have been clearing since 2009, I understand that they no longer remain my credit score. Do I need to reveal these?
• I own a flat in Wakefield , with a RBS - Direct Line loan with my ex husband. Him and his new partner are going to buy me out. We had consent from RBS - Direct Line to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for RBS - Direct Line (apparently). In order to save fees can I deal with the Land Registry change?

Questions that your conveyancer is likely to ask regarding your RBS - Direct Line Transfer of Equity

Information to consider in in addition to the above RBS - Direct Line transfer of equity Advice :

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 premises

If your property is leasehold, provisions in 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 as a result of 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a RBS - Direct Line Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 lawyer 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 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.