Sample questions relating to Royal Bank of Scotland transfer of equity

• I am planning on 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 Romsey lawyer to deal with the transfer of equity? They need to be on the Royal Bank of Scotland conveyancing panel.
• I am selling my equity in flat in Birmingham to my co-owners fiance, they are sticking with Royal Bank of Scotland being the the existing lender. We are debating as to who must cover the costs of the transfer of equity. Is this normally shared or is one party liable for the fees for?
• What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Royal Bank of Scotland - and have been quoted £250 plus VAT by Royal Bank of Scotland's appointed conveyancer, Is this a reasonable price?
• Law week I separated from my partner of 18 years. I'm now back with my parents again and she wishes to remain in the flat and buy me out. What portion do I get. Is it 50% of the equity after redeeming the mortgage with Royal Bank of Scotland? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
• Me and a friend got a joint mortgage with Royal Bank of Scotland on a property about a year ago. I am now thinking of buying a apartment by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Would there be any potential problem with Royal Bank of Scotland with him being responsible for the total mortgage as opposed to only half of it?
• My wife and I jointly own a BTL. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name to mitigate tax on the letting income. If Royal Bank of Scotland are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
• Online research suggests that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I am transferring equity and at the same time switching mortgage with Royal Bank of Scotland

Questions that your lawyer could ask in relation to your Royal Bank of Scotland Transfer of Equity

Information to consider in in addition to the above Royal Bank of Scotland transfer of equity Advice :

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

Should the tenure of your property be 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 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 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 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 varies based on the valuation 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 provided 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.