Questions and answers: Royal Bank of Scotland -Natwest One transfer of equity
- 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?
- Have recently separated from my ex of 18 years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage do I get. Is it 50% of the equity after redeeming the mortgage with Royal Bank of Scotland -Natwest One? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
- I purchased a house with my cousin five.seven years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off 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?
- My fiance and myself jointly own a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming Royal Bank of Scotland -Natwest One are content with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
- Is it sensible to stop my mortgage payments with Royal Bank of Scotland -Natwest One once a date for my remortgage and transfer of equity has been agreed?
- Can I apply to borrow a further advance from Royal Bank of Scotland -Natwest One as part of a Transfer of Equity?
- I am in the process of mortgaging my flat in Timperley
does my lawyer need to be on the Royal Bank of Scotland -Natwest One Conveyancing panel. The conveyancing also involves a transfer of equity.
Sample of information requested in a conveyancer questionnaire relating to Royal Bank of Scotland -Natwest One 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 give the name(s) and addresse(s) of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is there to be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Has consent been obtained from Royal Bank of Scotland -Natwest One to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in supporting the above Royal Bank of Scotland -Natwest One transfer of equity Advice :
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 Royal Bank of Scotland -Natwest One conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
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 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 market value of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Royal Bank of Scotland -Natwest One your property may be repossessed.
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 lawyer 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.
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.