Recently asked questions relating to Royal Bank of Scotland transfer of equity
- I acquired a property with my brother in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Royal Bank of Scotland mortgage. There is a significant difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
- Law month I separated from my partner of 18 years. I'm now living with my mum and dad and she wants to stay in the flat and pay me off. What percentage do I get. Is it half of the equity after discharging the Royal Bank of Scotland home loan? I assume proper valuations are necessary but I would like ensure that I'm getting I am not being walked over
- What are the average conveyancing fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Royal Bank of Scotland - and have been quoted £350 including VAT by Royal Bank of Scotland's approved lawyer, Is this a reasonable price?
- When it comes to transfer of equity conveyancing involving refinance with Royal Bank of Scotland should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am trying to find a conveyancer to undertake my transfer of equity. Royal Bank of Scotland are dealing with the refinancing. I considered asking my financial adviser. I am lead to believe he may receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
- Is it sensible to stop the direct debit for my mortgage with Royal Bank of Scotland once a date for my remortgage and transfer of equity has been set?
- I am planning on removing a name from a joint mortgage and the Royal Bank of Scotland require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the Royal Bank of Scotland conveyancing panel.
Information that may be required from your conveyancing solicitor is likely to ask about your Royal Bank of Scotland Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
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 list all persons who occupy the property, their respective ages and relationships to you.
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Caveats to be read in in addition to the above Royal Bank of Scotland transfer of equity Advice :
Tax and Legal
There are numerous potential 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 titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 conveyancing solicitor 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 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 should not be regarded as 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.