Frequently asked questions relating to RBS (One Account) transfer of equity

• My wife and I equally own a BTL. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to mitigate tax on the letting income. Assuming RBS (One Account) are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
• RBS (One Account) have just agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
• Been reviewing consumer blogs that solicitors are more expensive than conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and at the same time refinancing with RBS (One Account)
• Me and my former partner and I are searching for an affordable conveyancing lawyer to assist in a transfer of equity and refinance with RBS (One Account). I I am concerned about appointing the wrong one but with many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• I intend to refinance my flat in Crabtree changing from Lloyds TSB to RBS (One Account). The home is currently in joint names but I would like it to be in my sole name when I switch. My husband is OK with this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
• What are my options where I am dissatisfied with the conveyancing solicitor who handled our transfer of equity conveyancing?
• I am filling out a RBS (One Account) transfer of equity form and have arrived at the questions regarding defaults etc. I do some debts that I have been reducing over a long period, I understand that they have long since disappeared from my credit records. Am I obliged to set these out?

Sample of information requested in a conveyancing solicitor questionnaire relating to RBS (One Account) Transfer of Equity

Caveats to be read in supplemental the above RBS (One Account) transfer of equity Advice :

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 titles

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 terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 conveyancer 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 market value of the property at the time of completion of the transfer of equity transaction.

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

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.