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

• Given that we have been 5 years estranged I have opted to transfer my interest in our apartment to my husband who is refinancing with RBS - Direct Line. Could this transfer of equity be done in 28 days?
• What can I do where I am not happy with the conveyancing solicitor who carried out my transfer of equity transaction?
• My decree absolute has gone through as is the consent order. Now I must deal with the transfer of equity for the property and the RBS - Direct Line mortgage. I have called RBS - Direct Line for the transfer of equity application. What are my next steps?
• I currently have a joint RBS - Direct Line mortgage with my step-brother and am looking into the option of him assuming responsibility for the outstanding mortgage and removing myself from it, to enable me to purchase somewhere with my partner. The remaining mortgage is approx 200k, and the property value is in the region 500k. Is this a transfer of equity? Is stamp duty involved?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with RBS - Direct Line?
• I am selling my share of a house in Birmingham to my co-owners fiance, they are sticking with RBS - Direct Line as the the existing mortgage company. We are haggling as to who must cover the charges for the transfer of equity. Is this usually split or is one party liable for the costs of?
• I purchased a house with my brother in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the RBS - Direct Line mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Sample of questions in a conveyancer questionnaire relating to RBS - Direct Line Transfer of Equity

Caveats to be read in supplemental the above RBS - Direct Line transfer of equity information :

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 breach of 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.

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 conveyancing solicitor 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 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.