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

  • I am disposing of my equity in property in Warwick to the other co-owners husband, they are reapplying to Royal Bank of Scotland. We are in heated discussion as to who should pay the fees for the transfer of equity. Should this be split or is one of us obliged to cover the charges for?
  • My former husband are seeking to get a conveyancer in place for a new mortgage with Royal Bank of Scotland. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. Do we need to instruct a lawyer local to us?
  • I am remortgaging my apartment in Miles Platting does my lawyer have to be on the Royal Bank of Scotland Solicitor panel. The conveyancing also involves a transfer of equity.
  • What can I do where I am not happy with the conveyancer who carried out our transfer of equity conveyancing?
  • I am filling out a Royal Bank of Scotland transfer of equity request and have come to the questions concerning debts etc. I do some debts that I have been clearing for a number of years, I understand that they no longer remain my credit rating. Do I need to set these out?
  • What should I be budgeting for when it comes to what legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Royal Bank of Scotland - and have been quoted Four Hundred pounds excluding VAT by Royal Bank of Scotland's appointed lawyer, Is this a reasonable price?
  • I already have a home loan with Royal Bank of Scotland and am maintaining my existing mortgaging but applying to have it in my name only so my ex will come off the deeds. How long does the whole transfer of equity process take?

Examples of questions in a conveyancing solicitor questionnaire relating to 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 provide the details of anyone to be extracted from the property title?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please give the name(s) and addresse(s) of anyone to be added to the property title?

Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what figure

Please provide a copy of your National Insurance Number?

Important warnings to consider in further to the above Royal Bank of Scotland transfer of equity Info :

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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. 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 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 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 is dependent on the valuation of the property at the time of completion of the transfer of equity conveyancing.
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 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 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.


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