Sample questions relating to RBS - Direct Line transfer of equity

• Me and my former wife and I are are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and refinance with RBS - Direct Line. I am aware of the dangers of getting ripped off but with plenty conveyancing organisations who do transfer of equity conveyancing out there...how do I know which to select?
• I got divorced in 2011. Foolishly I never got around to change the ownership from the current 'joint' status to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. RBS - Direct Line is happy to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
• Will I incur any fees for a Transfer of Equity where the existing mortgage is with RBS - Direct Line?
• I am am in need of a conveyancing solicitor to undertake my transfer of equity. RBS - Direct Line have been approached for a remortgage. I considered asking my financial adviser. I am lead to believe he may get a referral fee for recommending someone, 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?
• I am in the process of removing a name from a joint mortgage and the RBS - Direct Line need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Littleborough lawyer to deal with the transfer of equity? They need to be on the RBS - Direct Line conveyancing panel.
• I intend to remortgage my apartment in Sedgefield moving from Yorkshire Building Society to RBS - Direct Line. The apartment is currently in joint names but wish for it to be in my name only when I switch. My wife is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• Having been three years estranged I have made the decision to relinquish up my share of the property to my husband who is re-mortgaging with RBS - Direct Line. Can a transfer of equity be done inside one month?

Information that may be required from your conveyancer is likely to ask in relation to your RBS - Direct Line Transfer of Equity

Caveats to be read in supporting the above RBS - Direct Line transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation 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 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 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 conclusion of the transfer of equity conveyancing.

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 conveyancer 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 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.