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Royal Bank of Scotland

Royal Bank of Scotland transfer of equity example support desk enquires

  • I am hoping to remortgage my home in Sedgefield moving from Barclays to Royal Bank of Scotland. The flat is jointly owned but wish for it to be in my sole name once I remortgage. My husband is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
  • Our mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Royal Bank of Scotland - Surely it’s advisable to just instruct them?
  • My partner and I jointly own a buy to let. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order mitigate tax on rental income. If Royal Bank of Scotland are content with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
  • What is the process for having a person removed from the title documents to a house if the home loan is with Royal Bank of Scotland
  • I am in the process of removing a name from a joint mortgage and the Royal Bank of Scotland require me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Timperley lawyer to deal with the transfer of equity? They need to be on the Royal Bank of Scotland conveyancing panel.
  • I am transferring my equity in property in Hendon to my co-owners fiance, they are reapplying to Royal Bank of Scotland. We are haggling as to who must pay the legal bill for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
  • Is it possible to apply to borrow a further advance from Royal Bank of Scotland as part of a Transfer of Equity?

Questions that your conveyancing solicitor is likely to ask regarding your Royal Bank of Scotland Transfer of Equity

Has one of the registered owners died? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please give the details of those who jointly own the premises with you?

Who will be responsible for the costs of the Transfer of Equity?

Has consent been obtained from Royal Bank of Scotland to the proposed transfer of equity?

Where you are adding someone 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” Questionnaire.

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Caveats to be read in in addition to the above Royal Bank of Scotland transfer of equity Info :

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 premises

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 is dependent 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.

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.


Frequently asked questions relating to Royal Bank of Scotland transfer of equity