Common questions relating to RBS (One Account) transfer of equity

• I am transferring my equity in house in Hendon to my co-owners fiance, they are reapplying to RBS (One Account). We are debating as to who should cover the costs of the transfer of equity. Should this be shared or is one of us obliged to cover the fees for?
• My dad died last March leaving a unencumbered property to me and my half brother 50:50. Having continues to reside at the property, there was a provision in her will specifying that the premisescould not be sold for 2 years after her passing so he could remain there for a prescribed period. He now wants to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
• My mortgage broker has recommended their conveyancer for the Transfer of Equity plus remortgage with RBS (One Account) - won’t it be easier to just instruct them?
• Me and my partner co-own a flat in Miles Platting . Mortgage is with RBS (One Account). I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be straightforward?
• What is the process for adding or subtracting names (transfer of equity) to or from my RBS (One Account) mortgage account?
• Can you tell me how to have a person removed from the title documents to a house where the mortgage is with RBS (One Account)
• I own a apartment in Wakefield , with a RBS (One Account) loan with my former husband. He and his fiance are going to acquire my share. We had consent from RBS (One Account) to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for RBS (One Account) (apparently). Is it possible for us to deal with the Land Registry formalities?

Sample of information requested in a conveyancer questionnaire concerning a RBS (One Account) Transfer of Equity

Caveats to be read in supporting the above RBS (One Account) 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 RBS (One Account) conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. 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 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 (One Account) 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 (One Account) 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.

Preparing the Transfer of Equity with a RBS (One Account) 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 (One Account) 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.

Content 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.