RBS - Virgin One transfer of equity example support desk enquires
- How and when do I pay stamp duty due for the transfer of equity in my property in my sole name which is happening simultaneously with a remortgage via RBS - Virgin One?
- My mother died half a year ago leaving a loan-free house to me and my brother 50:50. Having continues to reside at the house, there was a clause in her will saying the housecould not be sold for 24 months after her death so he could continue to live there for a specified time frame. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to acquire my half from me?
- I am thinking of refinancing my home in Ampthill does my lawyer need to be on the RBS - Virgin One Solicitor panel. The conveyancing also involves a transfer of equity.
- I acquired a house with my cousin in 2009 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the RBS - Virgin One mortgage. There is a meaningful difference between the value the RBS - Virgin One say and what the property would sell for currently. Can you offer any advice?
- I am planning on removing a name from a joint mortgage and the RBS - Virgin One need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Rye
conveyancing solicitor to deal with the transfer of equity? They need to be on the RBS - Virgin One conveyancing panel.
- When it comes to transfer of equity conveyancing involving a remortgage with RBS - Virgin One should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My existing home loan is with RBS - Virgin One. Can I transfer equity to someone who is not yet 18 years old?
Examples of information requested in a conveyancing solicitor questionnaire concerning a RBS - Virgin One Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Would you like us to prepare Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
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 completed?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
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?
Caveats to be read in supporting the above RBS - Virgin One 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 RBS - Virgin One 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 have a requirement for notices to be served and that you obtain the consent of 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.
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 conveyancer will check with RBS - Virgin One 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 RBS - Virgin One 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 transaction.
If you do not keep up the payments on your mortgage with RBS - Virgin One your property may be repossessed.
Preparing the Transfer of Equity with a RBS - Virgin One 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 RBS - Virgin One 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.
Content 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.