Questions and answers: RBS (One Account) transfer of equity
- How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my home in my sole name which is happening at the same time as a remortgage via RBS (One Account)?
- My divorce is through as is the consent order. Now I must address the transfer of equity at the HMLR and the RBS (One Account) home loan. I have asked RBS (One Account) for the transfer of equity forms. What do I do now?
- Me and a friend got a joint mortgage with RBS (One Account) on a apartment a couple of years ago. I am now thinking of purchasing a property on my own and my friend would like to buy me out. Once we have agreed a price what are the next steps? Is there likely to be any concerns with RBS (One Account) with him being responsible for the total mortgage rather than only part of it?
- RBS (One Account) yesterday agreed I can take over the home loan on my home. I previously applied for a transfer of equity but is this a transfer of ownership at HMLR in addition?
- I already have a mortgage with RBS (One Account) and am keeping my current mortgaging but seeking to have have the equity transferred to my name only so my former partner won't be on it any longer. How long can it take for the forms to be processed?
- I am hoping to refinance my flat in Blaenavon
changing from Natwest to RBS (One Account). The flat is currently in joint names but wish for it to be in my sole name when I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to incur lawyer charges.
- I am considering mortgaging my house in Friern Barnet
does my lawyer have to be on the RBS (One Account) Conveyancing panel. The conveyancing also involves a transfer of equity.
Sample of information requested in a lawyer questionnaire concerning a RBS (One Account) Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Has consent been obtained from RBS (One Account) to the proposed transfer of equity?
Please provide the details of anyone to be added to the title deeds?
Please provide the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Important warnings to consider in supporting the above RBS (One Account) 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 RBS (One Account) conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in breach of the lease. This could trigger 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 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 the time of completion 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 conveyancing solicitor 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.