Examples of recent questions relating to Royal Bank of Scotland transfer of equity
- What do I need to do when it comes adding or removing names (transfer of equity) to or from my Royal Bank of Scotland mortgage account?
- My partner and I jointly own a property in Crabtree
. Home loan is with Royal Bank of Scotland. I wish to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be straightforward?
- What do I do if I am not happy with the lawyer who did my transfer of equity transaction?
- My partner and myself jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name to mitigate tax on rental income. Assuming Royal Bank of Scotland are happy with this the legal fees are not prohibitive. What are the implications when we dispose of the property? Would my GGT relief be lost.
- What if my application doesn't meet Royal Bank of Scotland lending criteria for a transfer of equity?
- I co-own a flat in Littleborough
, with a Royal Bank of Scotland mortgage with my ex partner. Him and his fiance are going to acquire my share. We had the go ahead from Royal Bank of Scotland to replace my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Royal Bank of Scotland (supposedly). Is it possible for us to deal with the Land Registry formalities?
- I plan to refinance my home in Littleborough
moving from Skipton to Royal Bank of Scotland. The apartment is jointly owned but I would like it to be in my sole name once I switch. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancing solicitor involved.
Questions that your conveyancer may ask in relation to your Royal Bank of Scotland Transfer of Equity
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?
Please let us know where you are providing any payment for the Transfer of Equity and to whom and disclose the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Is the transfer of equity subject to a court order? If yes please supply a copy
Has consent been obtained from Royal Bank of Scotland to the proposed transfer of equity?
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Important warnings to consider 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
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 strictly observed you may be in violation of 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 conveyancer 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 market value 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 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 lawyer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content 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.