Recently asked questions relating to Royal Bank of Scotland transfer of equity
- Can I apply to borrow a further advance from Royal Bank of Scotland as part of a Transfer of Equity?
- I co-own a property in Crabtree
, with a Royal Bank of Scotland mortgage with my former 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 has to be done by a conveyancing solicitor for Royal Bank of Scotland (supposedly). In order to save fees can I deal with the Land Registry change?
- When it comes to transfer of equity conveyancing involving a remortgage with Royal Bank of Scotland should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- I am answering a Royal Bank of Scotland transfer of equity request and have arrived at the section concerning debts etc. There are some debts that I have been paying off over a long period, in fact they have long since disappeared from my credit score. Must I set these out?
- My Royal Bank of Scotland mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. Royal Bank of Scotland will permit the transfer of equity to my individual name. Do Royal Bank of Scotland get in touch with my employer to check my salary?
- Have recently separated from my wife of thirty years. I'm now living with my mum and dad and she wishes to remain in the property and buy me out. What percentage 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
- Me and my partner jointly own a flat in Crabtree
. Mortgage is with Royal Bank of Scotland. I would like to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be easy to so?
Questions that your lawyer may ask about your Royal Bank of Scotland Transfer of Equity
Has consent been obtained from Royal Bank of Scotland to the proposed transfer of equity?
Can you provide the name(s) and addresse(s) of those who jointly own the property with you?
Please give the details of anyone to be added to the title deeds?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
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, provisions in the lease may require that you have a license to do so from the freeholder. 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 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 market value of the property at the conclusion 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 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.