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

• I currently have a joint RBS - Direct Line mortgage with my cousin and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is approx 200k, and the property value is approx 500k. Is this a transfer of equity? Is land tax payable?
• Is it possible to apply to borrow a further advance from RBS - Direct Line as part of a Transfer of Equity?
• How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my home in my sole name which is happening simultaneously with a switching mortgage with RBS - Direct Line?
• I purchased a house with my brother in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the RBS - Direct Line mortgage. There is a meaningful difference between the value the bank hold and what the property would sell for currently. Can you offer any advice?
• RBS - Direct Line yesterday agreed I can take over the home loan on the house. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
• My former husband are looking to get a lawyer lined up 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 appoint a conveyancer local to us?
• My mum passed away seven months ago leaving a mortgage-free house to me and my step brother equally. Having continues to reside at the premises, there was a condition in her will specifying that the premisescould not be sold for three years after her death so he could continue to live there for a specified time frame. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the conventional way to buy my equity?

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

General Advice to read in further to 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

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 strictly observed 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 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 conveyancer 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 market value 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 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.

Content 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.