Top seven questions relating to RBS - Direct Line transfer of equity
- My partner and I equally own a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity into her name in order mitigate tax on rental income. If RBS - Direct Line are happy with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
- My ex are seeking to get a conveyancing solicitor in place for a refinance with RBS - Direct Line. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. Is it important to have a conveyancer local to us?
- I am selling my share of a house in Warwick to the other co-owners fiance, they are sticking with RBS - Direct Line as the the existing lender. We are in heated discussion as to who should cover the charges for the transfer of equity. Should this be split or is one of us obliged to cover the charges for?
- My RBS - Direct Line mortgage is in joint names with ex, he has agreed to be removed and let me have the property. RBS - Direct Line will permit the transfer of equity to me solely. Will RBS - Direct Line call my boss to confirm my salary?
- How do I go about adding or removing names (transfer of equity) to or from my RBS - Direct Line mortgage account?
- What do I do if I am not happy with the conveyancing solicitor who carried out our transfer of equity transaction?
- I already have a home loan with RBS - Direct Line and am keeping my current mortgaging but seeking to have have the equity transferred to my name only so my former husband won't be on it any longer. How long can it take for the paperwork to be processed?
Examples of questions in a conveyancer questionnaire relating to RBS - Direct Line Transfer of Equity
Is it the case that one of the registered owners passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
Can you give the details of those who jointly own 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 formalised?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in supporting the above RBS - Direct Line transfer of equity Advice :
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
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 varies based on the valuation 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 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 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.