Questions and answers: Royal Bank of Scotland transfer of equity

• Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with Royal Bank of Scotland?
• What are my options where I am dissatisfied with the conveyancing solicitor who conducted my transfer of equity conveyancing?
• Last year bought a flat without my fiance’s name on the title. My conveyancing solicitor said it is due to the fact that she was not in the loan offer with Royal Bank of Scotland. I'm wondering is there any way that I can add her name on the title?
• Royal Bank of Scotland have just agreed I can take over the home loan on the house. I had applied for a transfer of equity but is this a transfer of ownership at the Land Registry in addition?
• As things stand I have a joint Royal Bank of Scotland mortgage with my step-brother and am investigating the possibility of him taking on the outstanding mortgage and removing myself from it, to enable me to buy somewhere with my fiance. The remaining mortgage is about 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
• The financial adviser has recommended their conveyancer for our Transfer of Equity plus remortgage with Royal Bank of Scotland - won’t it be advisable to just use them?
• My partner and I jointly own a flat in Heathfield . Home loan is with Royal Bank of Scotland. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be straightforward?

Examples of information requested in a conveyancing solicitor form relating to Royal Bank of Scotland Transfer of Equity

Caveats to be read in conjunction with the above Royal Bank of Scotland transfer of equity Info :

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 Royal Bank of Scotland 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 have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 conveyancer will check with Royal Bank of Scotland 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 Royal Bank of Scotland 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 the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Royal Bank of Scotland Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Royal Bank of Scotland 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 lawyer 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.