Common questions relating to RBS (One Account) transfer of equity

• My ex are looking to get a lawyer in place for a refinance with RBS (One Account). Transfer of Equity conveyancing is also necessaryI have used the different comparison based services and the results are from all over the country. Do we need to appoint a conveyancing solicitor local to us?
• How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with RBS (One Account) - and have been quoted £350 plus VAT by RBS (One Account)'s appointed conveyancing solicitor, Is this is a good price or not?
• My fiance and I jointly own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name with a view to reduce our tax on the letting income. Assuming RBS (One Account) are content with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the deeds am I giving up my CGT relief.
• What legal advice do I need when doing a transfer of equity where the home loan is to remain with RBS (One Account)?
• Our mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with RBS (One Account) - Is it not simpler easier to just use them?
• What are my options where I am not happy with the conveyancing solicitor who undertook our transfer of equity conveyancing?
• I am am in need of a conveyancer to undertake my transfer of equity. RBS (One Account) are dealing with the remortgage. I considered asking my financial adviser. I understand he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic misguided?

Questions that your lawyer may ask in relation to your RBS (One Account) Transfer of Equity

Important warnings to consider in conjunction with the above RBS (One Account) transfer of equity Advice :

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 RBS (One Account) conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

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 (One Account) 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 (One Account) 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.

Preparing the Transfer of Equity with a RBS (One Account) 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 RBS (One Account) 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.