Questions and answers: Royal Bank of Scotland transfer of equity
- Can you tell me how to have a person removed from the deeds to a house where the home loan is with Royal Bank of Scotland
- Law month I split up with my wife of thirty years. I'm now living with my mum and dad and she wishes to remain in the apartment and pay me off. What percentage am I entitled to. Is it half of the equity after paying off 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
- Royal Bank of Scotland have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry on top?
- Is it possible to apply to request a further advance from Royal Bank of Scotland as part of a Transfer of Equity?
- I am in the process of removing a name from a joint mortgage and the Royal Bank of Scotland need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Witham
lawyer to deal with the transfer of equity? They need to be on the Royal Bank of Scotland conveyancing panel.
- I am answering a Royal Bank of Scotland transfer of equity form and have arrived at the section that asks about defaults etc. I do some debts that I have been clearing over a long period, in fact they have long since disappeared from my credit score. Am I obliged to set these out?
- My wife and I have equal shares in a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to reduce our tax on the letting income. If Royal Bank of Scotland are happy with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
Sample of questions in a conveyancing solicitor form concerning a 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?
Has one of the registered proprietors passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
If you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
General Advice to read in supplemental the above Royal Bank of Scotland transfer of equity information :
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 properties
If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Royal Bank of Scotland your property may be repossessed.
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 conveyancer 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.