Frequently asked questions relating to RBS (One Account) transfer of equity

• My ex-wife and I are in the market for an affordable conveyancing lawyer to assist in a transfer of equity and refinance with RBS (One Account). I am aware of the possibility of getting ripped off but with so many conveyancing organisations who do transfer of equity conveyancing out there...how do I know which to select?
• My brother and I got a joint mortgage with RBS (One Account) on a flat about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any problem with RBS (One Account) with him being on the hook for the total mortgage as opposed to only half of it?
• Will I have to pay any fees for a Transfer of Equity where the existing mortgage is with RBS (One Account)?
• What are the average solicitors costs are for a transfer of equity? I need to transfer equity and remortgage - new loan with RBS (One Account) - and have been quoted £350 including VAT by RBS (One Account)'s approved lawyer, Have I been over quoted?
• I am transferring my equity in house in Birmingham to the other co-owners husband, they are reapplying to RBS (One Account). We are in heated discussion as to who must cover the charges for the transfer of equity. Is this usually split or is one party obliged to cover the legal bill?
• At what point do I pay stamp duty due for the transfer of equity in my property in my sole name which is happening at the same time as a refinancing via RBS (One Account)?
• What can I do where I am unhappy with the conveyancer who handled my transfer of equity conveyancing?

Information that may be required from your lawyer is likely to ask about your RBS (One Account) Transfer of Equity

Important warnings to consider in in addition to the above RBS (One Account) transfer of equity Info :

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 premises

If your property is leasehold, provisions in 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 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 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 conveyancing.

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

When it comes to preparing the the Land Registry documents your conveyancer 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.