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RBS - Direct Line

Top seven questions relating to RBS - Direct Line transfer of equity

  • My mum passed away last May leaving a unencumbered bungalow to me and my half brother in equal shared. He has always lived in the property, there was a clause in her will specifying that the propertycould not be sold for three years following her passing so he could reside there for a specified time frame. He now says he would like to remain in the property beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to acquire my equity?
  • I own a house in Winchelsea , with a RBS - Direct Line mortgage with my ex partner. He and his fiance are going to acquire my share. We had approval from RBS - Direct Line to remove my name with hers. The transfer of equity has to be completed by a lawyer for RBS - Direct Line (apparently). Is it possible for us to do the Land Registry change?
  • My fiance and I equally own a BTL. I am a top rate tax payer. Preferably I would like to do a transfer of equity into her name to mitigate tax on rental income. Assuming RBS - Direct Line are fine with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
  • I am trying to find a lawyer to undertake my transfer of equity. RBS - Direct Line have been approached for a remortgage. I considered asking my financial adviser. I understand he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?
  • I already have a home loan with RBS - Direct Line and am retaining my existing mortgaging but applying to have have the equity transferred to my name only so my ex will be removed from the deeds. How long do RBS - Direct Line take to deal with the application?
  • What is the process for adding or removing names (transfer of equity) to or from my RBS - Direct Line mortgage account?
  • Can I transfer the equity held in my property with my RBS - Direct Line home loan?

Questions that your conveyancer is likely to ask about your RBS - Direct Line Transfer of Equity

Please provide a copy of your National Insurance Number?

Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

If are going to hold 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 whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please give the details of anyone to be removed from the title deeds?

Have you approached RBS - Direct Line to obtain consent to the Transfer of Equity

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

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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and 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 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 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
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 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 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.


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