Questions and answers: RBS - Virgin One transfer of equity
- I am led to believe we would need at least AP1 and TR1. Is this true?
- I purchased a property with my cousin in 2010 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is removed 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?
- I am am in need of a conveyancer to undertake my transfer of equity. RBS - Virgin One have been approached for a refinancing. I considered asking my mortgage broker. I understand he will likely get a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic correct?
- How do I go about adding or subtracting names (transfer of equity) to or from my RBS - Virgin One mortgage account?
- My ex are seeking to get a lawyer lined up for a refinance with RBS - Virgin One. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
- My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity for the property and the RBS - Virgin One home loan. I have asked RBS - Virgin One for the transfer of equity application. What are my next steps?
- My wife and myself jointly own a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name to reduce our tax on the letting income. Assuming RBS - Virgin One are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
Questions that your conveyancer is likely to ask in relation to your RBS - Virgin One Transfer of Equity
Have you approached RBS - Virgin One to obtain consent to the Transfer of Equity
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please confirm where you are providing any payment for the Transfer of Equity and to whom and notify us any such sums?
Caveats to be read in supporting the above RBS - Virgin One transfer of equity information :
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 premises
If your property is leasehold, the lease may require that you have a license to do so from the freeholder. 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 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 finalisation of the transfer of equity conveyancing.
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 conveyancing solicitor 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.