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RBS - Direct Line

Examples of recent questions relating to RBS - Direct Line transfer of equity

  • My existing home loan is with RBS - Direct Line. Can I transfer equity to someone less than 18 years old?
  • I already have a mortgage with RBS - Direct Line and am keeping my current mortgaging but applying to have it in 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?
  • Our mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with RBS - Direct Line - Surely it’s better to just use them?
  • My wife and I jointly own a buy to let. I am a top rate tax payer. Ideally I would like to do a transfer of equity into her name to reduce our tax on rental income. Assuming RBS - Direct Line are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
  • I plan to refinance my apartment in Rye switching from Accord to RBS - Direct Line. The home is currently in joint names but wish for it to be in my sole name when I remortgage. My husband is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor charges.
  • As things stand I have a joint RBS - Direct Line mortgage with my brother and am investigating the feasibility of him taking on the outstanding mortgage and removing myself from it, to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 200k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty involved?
  • I got divorced in 2010. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. RBS - Direct Line is willing to transfer the property and loan in my name (financial checks done). Does she need a lawyer?

Questions that your conveyancing solicitor may ask about your RBS - Direct Line Transfer of Equity

Where you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please list all persons who occupy the property, their respective ages and relationships to you.

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

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?

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?

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

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 titles

If your property is leasehold, provisions in 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 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 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 market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with RBS - Direct Line your property may be repossessed.

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 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.


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