Common questions relating to Royal Bank of Scotland -Natwest One transfer of equity
- I am in the process of mortgaging my home in Crabtree
does my lawyer have to be on the Royal Bank of Scotland -Natwest One Solicitor panel. The conveyancing also involves a transfer of equity.
- My partner and I jointly own a flat in Littleborough
. Home loan is with Royal Bank of Scotland -Natwest One. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be straightforward?
- I already have a mortgage with Royal Bank of Scotland -Natwest One and am retaining my current mortgaging but wish to have it in my sole name so my former wife will be removed from the deeds. How long does the whole transfer of equity process take?
- The mortgage broker has recommended their lawyer for the Transfer of Equity plus remortgage with Royal Bank of Scotland -Natwest One - Surely it’s advisable to just use them?
- My mother died half a year ago leaving a unencumbered property to me and my 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 2 years after her death so he could continue to live there for a while. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a mortgage in the traditional way to purchase my equity?
- I am transferring my share of a house in Birmingham to the other co-owners husband, they are sticking with Royal Bank of Scotland -Natwest One as the the existing lender. We are haggling as to who must cover the costs of the transfer of equity. Is this normally split or is one of us liable for the charges for?
- How do I go about adding or subtracting names (transfer of equity) to or from my Royal Bank of Scotland -Natwest One mortgage account?
Examples of questions in a conveyancing solicitor questionnaire concerning a Royal Bank of Scotland -Natwest One Transfer of Equity
Where you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Who will be responsible for the costs of the Transfer of Equity?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
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 list all persons who occupy the property, their respective ages and relationships to you.
Have you approached Royal Bank of Scotland -Natwest One to seek consent to the Transfer of Equity
Information to consider in supporting the above Royal Bank of Scotland -Natwest One 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 Royal Bank of Scotland -Natwest One conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could potentially result in 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Royal Bank of Scotland -Natwest One.
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 conveyancing solicitor 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information contained within 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.