Questions and answers: RBS (One Account) transfer of equity

• Having been three years estranged I have opted to give up my interest in the house to my husband who is re-mortgaging with RBS (One Account). Can a transfer of equity be done in less than one month?
• What is the process for having someone removed from the title documents to a property if the home loan is with RBS (One Account)
• What can I do where I am not happy with the conveyancing solicitor who undertook my transfer of equity conveyancing?
• My former wife are looking to get a lawyer lined up for a refinance with RBS (One Account). Transfer of Equity conveyancing is also necessaryI have used the different rating based websites and the results are from all over the country. Is it important to instruct a conveyancer local to us?
• Me and my former partner and I are in the market for a dependable conveyancing lawyer to help me sell in a transfer of equity and remortgage with RBS (One Account). I really don't want to get ripped off and there are plenty conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to select?
• My brother and I got a joint mortgage with RBS (One Account) on a property a couple of years ago. I am now looking to get a property on my own and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any problem with RBS (One Account) with him being responsible for the total mortgage as opposed to only part of it?
• Is it sensible to cancel the direct debit for my mortgage with RBS (One Account) once a date for my remortgage and transfer of equity has been set?

Examples of questions in a lawyer questionnaire concerning a RBS (One Account) Transfer of Equity

Caveats to be read in supplemental 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 titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 conveyancing solicitor 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 conclusion 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.