Frequently asked questions relating to Royal Bank of Scotland -Natwest One transfer of equity

• My divorce is through as is the consent order. Now I have to address the transfer of equity on title deeds and the Royal Bank of Scotland -Natwest One home loan. I have contacted Royal Bank of Scotland -Natwest One for the transfer of equity application. What happens next?
• I acquired a flat with a friend six years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Royal Bank of Scotland -Natwest One mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I co-own a property in Ampthill , with a Royal Bank of Scotland -Natwest One loan with my ex husband. He and his new partner are going to acquire my share. We had approval from Royal Bank of Scotland -Natwest One to substitute my name with hers. The transfer of equity has to be done by a conveyancer for Royal Bank of Scotland -Natwest One (apparently). In order to save fees can I do the Land Registry change?
• Royal Bank of Scotland -Natwest One have just agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
• At what stage do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is taking place at the same time as a refinancing via Royal Bank of Scotland -Natwest One?
• Do I need legal representation when doing a transfer of equity where the home loan is to remain with Royal Bank of Scotland -Natwest One?
• I am filling out a Royal Bank of Scotland -Natwest One transfer of equity request and have come to the part that asks about debts etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit score. Am I obliged to set these out?

Sample of information requested in a lawyer questionnaire concerning a Royal Bank of Scotland -Natwest One Transfer of Equity

Important warnings to consider in supplemental the above Royal Bank of Scotland -Natwest One transfer of equity information :

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 Royal Bank of Scotland -Natwest One 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 landlord. If such restrictions are not strictly observed 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 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 Royal Bank of Scotland -Natwest One 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 Royal Bank of Scotland -Natwest One 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.

Preparing the Transfer of Equity with a Royal Bank of Scotland -Natwest One 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 Royal Bank of Scotland -Natwest One 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.