Sample questions relating to RBS - Direct Line transfer of equity
- My mum passed away early last year leaving a unencumbered house to me and my step brother in equal shared. He has always lived in the premises, there was a clause in her will specifying that the housecould not be sold for three years after her death so he could reside there for a specified time frame. He now wants to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the conventional way to purchase my equity?
- I am hoping to remortgage my flat in Timperley
changing from Leeds Building Society to RBS - Direct Line. The maisonette is currently in joint names but propose for it to be in my name only when I switch. My wife has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- Last year bought a apartment without my wife's name on the ownership paperwork. My conveyancer claimed it is due to the fact that she was not in the loan offer with RBS - Direct Line. Is it possible for me to put her name on the documents at HMLR?
- My former wife are looking to get a conveyancer lined up for a new mortgage with RBS - Direct Line. Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over UK. How necessary is it to instruct a lawyer local to us?
- I am looking for a conveyancer to undertake my transfer of equity. RBS - Direct Line have been approached for a remortgage. I considered asking my mortgage broker. I am lead to believe he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
- Can I apply to request a further advance from RBS - Direct Line as part of a Transfer of Equity?
- My mortgage broker has suggested using their lawyer for our Transfer of Equity plus remortgage with RBS - Direct Line - Is it not simpler better to just instruct them?
Information that may be required from your conveyancing solicitor is likely to ask regarding your RBS - Direct Line Transfer of Equity
Please provide the details of anyone to be removed from the title deeds?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
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?
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?
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
General Advice to read in further to 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 properties
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 varies based on the market value of the property at the time of completion 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 conveyancing solicitor 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 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.