Questions and answers: Royal Bank of Scotland transfer of equity
- I acquired a property with a friend six years ago Since then, 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 mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- Law week I separated from my ex of twenty years. I'm now back with my mum and dad and she wants to stay in the flat and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the mortgage with Royal Bank of Scotland? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
- Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I need to be transferring equity and simultaneously refinancing with Royal Bank of Scotland
- What are the average legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Royal Bank of Scotland - and have been quoted £250 including VAT by Royal Bank of Scotland's appointed conveyancer, Is this a reasonable price?
- I currently have a joint Royal Bank of Scotland mortgage with my brother and am investigating the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is about 175k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
- My Royal Bank of Scotland mortgage we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Royal Bank of Scotland have consented to the transfer of equity to me solely. Will Royal Bank of Scotland write my company to confirm my salary?
- My financial adviser has suggested using their lawyer for the Transfer of Equity plus remortgage with Royal Bank of Scotland - Is it not simpler advisable to just instruct them?
Questions that your conveyancing solicitor is likely to ask about your Royal Bank of Scotland Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If 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?
Can you provide the details of anyone who jointly owns the premises with you?
Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
General Advice to read in further to the above Royal Bank of Scotland transfer of equity Questions and Answers :
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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could trigger 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 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 Royal Bank of Scotland 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 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 the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Royal Bank of Scotland.
Preparing the Transfer of Equity with a Royal Bank of Scotland 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 Royal Bank of Scotland 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 lawyer 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.