Sample questions relating to Royal Bank of Scotland transfer of equity
- I am answering a Royal Bank of Scotland transfer of equity application and have come to the questions that asks about defaults etc. I do some debts that I have been clearing for a number of years, I understand that they have long since disappeared from my credit records. Must I disclose these?
- My brother and I 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. Assuming we can agree a figure what are the next steps? Would there be any potential concerns with Royal Bank of Scotland with him being responsible for the total loan rather than only half of it?
- Royal Bank of Scotland yesterday agreed I can take over the home loan on the house. I have applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?
- My former husband are seeking to get a conveyancer lined up for a remortgage with Royal Bank of Scotland. Transfer of Equity conveyancing is also requiredI have used the different comparison based services and the results are from all over UK. Is it important to have a conveyancer local to us?
- I understand we would need at least AP1 and TR1. Is this true?
- What are the average conveyancing 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 Three Hundred pounds excluding VAT by Royal Bank of Scotland's approved conveyancer, Have I been over quoted?
- What is the process for adding or subtracting names (transfer of equity) to or from my Royal Bank of Scotland mortgage account?
Sample of information requested in a conveyancer form relating to Royal Bank of Scotland Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the title deeds?
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone who jointly owns the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
Important warnings to consider in further 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 properties
If your property is leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of 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 conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Royal Bank of Scotland your property may be repossessed.
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 lawyer 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.