Sample questions relating to Royal Bank of Scotland transfer of equity
- I acquired a property with my cousin five.seven years ago Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Royal Bank of Scotland mortgage. There is a 30k difference between the value the Royal Bank of Scotland say and what the property would sell for currently. Can you offer any advice?
- I am looking for a lawyer to undertake my transfer of equity. Royal Bank of Scotland are dealing with the remortgage. I thought of asking my financial adviser. I understand he will likely receive a referral fee for suggesting a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic correct?
- Can I apply to request a further advance from Royal Bank of Scotland as part of a Transfer of Equity?
- What are my options where I am unhappy with the lawyer who did my transfer of equity transaction?
- My mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Royal Bank of Scotland - Surely it’s advisable to just use them?
- My partner and I co-own a flat in Ampthill . Home loan is with Royal Bank of Scotland. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be straightforward?
- My fiance and I have 50:50 shares in a buy to let. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Royal Bank of Scotland are fine with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
Information that may be required from your lawyer could ask regarding your Royal Bank of Scotland Transfer of Equity
Who will be responsible for the costs of the Transfer of Equity?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please provide the details of anyone to be added to the title deeds?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please list all persons who occupy the property, their respective ages and relationships to you.
Caveats to be read in further to the above Royal Bank of Scotland transfer of equity information :
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 terms are not adhered to you may be in breach 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 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 market value of the property at finalisation 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 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.