Recently asked questions relating to RBS (One Account) transfer of equity
- Taking into account that we have been 4 years apart I have made the decision to transfer my interest in the property to my husband who is re-mortgaging with RBS (One Account). Could this transfer of equity be completed within four weeks?
- I am planning on removing a name from a joint mortgage and the RBS (One Account) require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Littleborough
lawyer to deal with the transfer of equity? They need to be on the RBS (One Account) conveyancing panel.
- I currently have a joint RBS (One Account) mortgage with my step-brother and am looking into the option of him taking on the whole mortgage and extracting myself from it, to enable me to buy somewhere with my partner. The outstanding mortgage is approx 300k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax payable?
- What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - moving over to RBS (One Account) - and have been quoted Four Hundred pounds including VAT by RBS (One Account)'s appointed conveyancer, Is this is a good price or not?
- What are my options where I am unhappy with the conveyancing solicitor who conducted my transfer of equity transaction?
- Will I have to pay any charges for a Transfer of Equity where the existing home loan is with RBS (One Account)?
- I got divorced in 2012. For some reason I never dealt with the transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is needed. RBS (One Account) is willing to transfer the property and loan in my name (financial checks done). Does she need a lawyer?
Sample of questions in a conveyancing solicitor questionnaire concerning a RBS (One Account) Transfer of Equity
Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Who will be responsible for the costs of the Transfer of Equity?
Can you provide the details of anyone who jointly owns the premises with you?
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Has consent been obtained from RBS (One Account) to the proposed transfer of equity?
Important warnings to consider in conjunction with the above RBS (One Account) 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 RBS (One Account) conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, the lease may require that you obtain the consent of 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 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 conveyancer 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 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 (One Account).
Preparing the Transfer of Equity with a RBS (One Account) 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 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 should not be regarded as 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.