Sample questions relating to RBS - Direct Line transfer of equity
- My fiance and I jointly own a BTL. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. If RBS - Direct Line are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- My father passed away half a year ago leaving a unencumbered bungalow to me and my brother in equal shared. He has always lived in the property, there was a clause in the will specifying that the premisescould not be sold for three years following her passing so he could remain there for a specified time frame. He now says he would like to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to purchase my share?
- After 4 years apart I have decided to give up my share of our flat to my husband who is re-mortgaging with RBS - Direct Line. Can a transfer of equity be completed in 28 days?
- My RBS - Direct Line home loan we jointly entered into with ex, who is agreeable to come off the deeds and let me have the property. RBS - Direct Line will permit the transfer of equity to my individual name. Will RBS - Direct Line contact my boss to verify my salary?
- At what point do I incur stamp duty chargeable for the transfer of equity in my house in my name alone which is happening simultaneously with a switching mortgage via RBS - Direct Line?
- Can you tell me how to have someone removed off the deeds to a house if the mortgage is with RBS - Direct Line
- I am disposing of my equity in house in Woodside to my co-owners husband, they are sticking with RBS - Direct Line as the the existing lender. We are debating as to who should pay the charges for the transfer of equity. Should this be shared or is one party obliged to cover the legal bill?
Examples of information requested in a conveyancer questionnaire relating to RBS - Direct Line Transfer of Equity
Is it the case that one of the registered owners died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please give the details of anyone to be added to the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Important warnings to consider in further to 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 titles
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. 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 is dependent on the valuation of the property at finalisation 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 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 conveyancer 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.