Top seven questions relating to RBS- First Active transfer of equity
- I got my Decree Absolute in 2010. For some reason I never got around to transfer ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. RBS- First Active is willing to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
- Will I have to pay any charges for a Transfer of Equity where the existing mortgage is with RBS- First Active?
- Me and a friend got a joint mortgage with RBS- First Active on a property a couple of years ago. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential issue with RBS- First Active with him being on the hook for the total loan rather than only half of it?
- I am in the process of removing a name from a joint mortgage and the RBS- First Active require me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the RBS- First Active conveyancing panel.
- I am hoping to remortgage my home in Witham
moving from Birmingham Midshires to RBS- First Active. The apartment is jointly owned but propose for it to be in my name only once I remortgage. My wife is OK with this and is willing to transfer equity but neither of us want to get a second conveyancer involved.
- How much the typical legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with RBS- First Active - and have been quoted £350 including VAT by RBS- First Active's appointed conveyancing solicitor, Have I been over quoted?
- Been reviewing online blogs that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously switching mortgage with RBS- First Active
Information that may be required from your lawyer may ask regarding your RBS- First Active Transfer of Equity
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please list all persons who occupy the property, their respective ages and relationships to you.
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Important warnings to consider in in addition to the above RBS- First Active 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 RBS- First Active conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is 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 breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with RBS- First Active your property may be repossessed.
Preparing the Transfer of Equity with a RBS- First Active Mortgage
When it comes to preparing the the Land Registry documents your lawyer 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.