Questions and answers: Royal Bank of Scotland transfer of equity

• I intend to refinance my maisonette in Winchelsea changing from Lloyds TSB to Royal Bank of Scotland. The flat is currently in joint names but wish for it to be in my name only as and when I switch. My former partner has verbally consented to this and is happy to sign a form but neither of us want to incur lawyer fees.
• What if my application doesn't meet Royal Bank of Scotland lending criteria for a transfer of equity?
• My fiance and I jointly own a BTL. I am a top rate tax payer. Preferably I wish to do a transfer of equity into her name in order reduce our tax on rental income. If Royal Bank of Scotland are happy with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
• I am trying to find a lawyer to deal with my transfer of equity. Royal Bank of Scotland have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he may get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic misguided?
• I am answering a Royal Bank of Scotland transfer of equity application and have come to the questions that asks about defaults etc. There are some debts that I have been paying off since 2008, in fact they have long since disappeared from my credit records. Am I obliged to declare these?
• What are the average legal costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Royal Bank of Scotland - and have been quoted £350 including VAT by Royal Bank of Scotland's approved lawyer, Is this is a good price or not?
• I am disposing of my equity in apartment in Hendon to the other co-owners husband, they are reapplying to Royal Bank of Scotland. We are haggling as to who should pay the fees for the transfer of equity. Is this normally split or is one party liable for the legal bill?

Examples of questions in a conveyancer questionnaire concerning a Royal Bank of Scotland Transfer of Equity

Caveats to be read in supporting the above Royal Bank of Scotland transfer of equity Questions and Answers :

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 Royal Bank of Scotland 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 have a requirement for notices to be served and that you have a license to do so from the landlord. 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 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 conveyancing solicitor 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 is dependent on the valuation of the property at the conclusion of the transfer of equity conveyancing.

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 should not be regarded as 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.