Top seven questions relating to RBS - Virgin One transfer of equity
- How and when do I incur the Stamp Duty Land Tax payable for the transfer of equity in my house in my name alone which is taking place at the same time as a refinancing via RBS - Virgin One?
- I purchased a property with a friend five.seven years ago Since then, we have both got married. We are now looking to do a transfer of equity so my name comes off the RBS - Virgin One mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- When it comes to transfer of equity conveyancing involving refinance with RBS - Virgin One should I be charged 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
- I am transferring my equity in property in Woodside to the other co-owners fiance, they are sticking with RBS - Virgin One being the the existing lender. We are haggling as to who must cover the costs of the transfer of equity. Should this be split or is one of us obliged to cover the fees for?
- My partner and I have equal shares in a buy to let. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name in order mitigate tax on rental income. Assuming RBS - Virgin One are happy with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
- Can I apply to borrow a further advance from RBS - Virgin One as part of a Transfer of Equity?
- As things stand I have a joint RBS - Virgin One mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a property with my partner. The remaining mortgage is about 175k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?
Information that may be required from your lawyer is likely to ask in relation to your RBS - Virgin One Transfer of Equity
Please provide the details of anyone to be added to the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be extracted from the title deeds?
Please inform us if you are making any payment for the Transfer of Equity and to whom and disclose the amount?
Would you like us to draft you Declaration of Trust. If so are you willing to incur the additional fee (beyond the Transfer of Equity fee)?
General Advice to read in supplemental 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 require that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of your covenants under 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with RBS - Virgin One.
Preparing the Transfer of Equity with a RBS - Virgin One 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 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.