Questions and answers: Royal Bank of Scotland transfer of equity

• I am planning on removing a name from a joint mortgage and the Royal Bank of Scotland need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Crabtree conveyancing solicitor to deal with the transfer of equity? They need to be on the Royal Bank of Scotland conveyancing panel.
• Will I incur any charges for a Transfer of Equity where the current home loan is with Royal Bank of Scotland?
• My current mortgage is with Royal Bank of Scotland. Can I transfer equity to someone under eighteen years old?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Royal Bank of Scotland?
• I currently have a joint Royal Bank of Scotland mortgage with my step-brother and am investigating the possibility of him assuming responsibility for the whole mortgage and removing myself from it, so as to enable me to purchase somewhere with my fiance. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
• What do I do if I am not happy with the conveyancing solicitor who conducted my transfer of equity conveyancing?
• Law week I split up with my ex of 18 years. I'm now living with my parents again and she wishes to stay in the property and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with Royal Bank of Scotland? I assume proper valuations are required but I would like ensure that I'm getting I am not being walked over

Sample of questions in a conveyancer questionnaire concerning a Royal Bank of Scotland Transfer of Equity

General Advice to read in supplemental 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 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.

Preparing the Transfer of Equity with a Royal Bank of Scotland 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 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 conveyancer 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.