Recently asked questions relating to RBS - Direct Line transfer of equity

• Is it possible to apply to request more money from RBS - Direct Line as part of a Transfer of Equity?
• As things stand I have a joint RBS - Direct Line mortgage with my cousin and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy somewhere with my fiance. The remaining mortgage is in the region 250k, and the property value is in the region 600k. Is this a transfer of equity? Is land tax due?
• What are the average solicitors fees are for a transfer of equity? I'm in the process of remortgaging - new loan with RBS - Direct Line - and have been quoted £250 including VAT by RBS - Direct Line's appointed lawyer, Is this a reasonable price?
• Will I have to pay any fees for a Transfer of Equity where the current mortgage is with RBS - Direct Line?
• I am answering a RBS - Direct Line transfer of equity application and have come to the section that asks about defaults etc. There are some debts that I have been discharging over a long period, I understand that they have long since disappeared from my credit rating. Do I need to declare these?
• I am are looking to find a quality conveyancing lawyer to assist in a transfer of equity and remortgage with RBS - Direct Line. I I am fearful of appointing the wrong one but with lots of conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
• Taking into account that we have been 5 years apart I have made the decision to give up my share of the flat to my husband who is re-mortgaging with RBS - Direct Line. Could this transfer of equity be completed inside one month?

Information that may be required from your lawyer may ask in relation to your RBS - Direct Line Transfer of Equity

Important warnings to consider in in addition to the above RBS - Direct Line 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 RBS - Direct Line conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to 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 - Direct Line 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 - Direct Line 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 transaction.

Preparing the Transfer of Equity with a RBS - Direct Line 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 - Direct Line 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 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.