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RBS- First Active transfer of equity: q and a’s

  • Me and my partner co-own a property in Rye . Home loan is with RBS- First Active. I want to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Do you think this should be simple?
  • My mother died early last year leaving a unencumbered house to me and my brother in equal shared. He has always lived in the premises, there was a provision in the will specifying that the housecould not be sold for 2 years following her passing so he could remain there for a prescribed period. He now says he would like to remain in the premises beyond the specified 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 mortgage in the conventional way to purchase my share?
  • My ex-wife and I are in the market for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with RBS- First Active. I I am fearful of by bill escalating out of control and there are lots of conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
  • Our financial adviser has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with RBS- First Active - won’t it be better to just instruct them?
  • How much the typical legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to RBS- First Active - and have been quoted Three Hundred pounds plus VAT by RBS- First Active's appointed lawyer, Have I been over quoted?
  • What is the process for adding or removing names (transfer of equity) to or from my RBS- First Active mortgage account?
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with RBS- First Active?

Sample of questions in a conveyancing solicitor form concerning a RBS- First Active Transfer of Equity

Is the transfer of equity subject to a court order? If yes please supply a copy

Is there to be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

Please provide the name(s) and addresse(s) of anyone to be added to the property title?

Is it the case that one of the registered owners passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in supporting the above RBS- First Active transfer of equity information :

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 RBS- First Active 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 landlord. If such conditions are not complied with you may be in breach of 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 lawyer will check with RBS- First Active 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- First Active 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 market value of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with RBS- First Active.

Preparing the Transfer of Equity with a RBS- First Active 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 RBS- First Active 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 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.


Frequently asked questions relating to RBS- First Active transfer of equity