Frequently asked questions relating to RBS- First Active transfer of equity
- When it comes to transfer of equity conveyancing involving refinance with RBS- First Active should I be charged VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- How much the typical solicitors costs are for a transfer of equity? I'm in the process of remortgaging - new loan with RBS- First Active - and have been quoted Three Hundred pounds plus VAT by RBS- First Active's approved conveyancer, Is this is a good price or not?
- I purchased a house with a friend in 2009 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the RBS- First Active mortgage. There is a 30k difference between the value the RBS- First Active say and what the property would sell for currently. Can you offer any advice?
- My fiance and I have 50:50 shares in a investment property. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name to reduce our tax on the letting income. If RBS- First Active are content with this the legal fees are not prohibitive. What are the implications when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with RBS- First Active - Surely it’s advisable to just instruct them?
- I currently have a joint RBS- First Active mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, so as to enable me to buy a place with my fiance. The remaining mortgage is approx 250k, and the property value is about 600k. Is this a transfer of equity? Is land tax involved?
- I am selling my share of a apartment in Birmingham to my co-owners fiance, they are reapplying to RBS- First Active. We are in heated discussion as to who should pay the costs of the transfer of equity. Is this normally shared or is one of us liable for the legal bill?
Information that may be required from your conveyancer could ask in relation to your RBS- First Active Transfer of Equity
Has 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..
Who will be responsible for the costs of the Transfer of Equity?
Have you approached RBS- First Active to obtain consent to the Transfer of Equity
Please provide the details of anyone to be extracted from the title deeds?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Information to consider in further to the above RBS- First Active transfer of equity Advice :
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
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 terms are not adhered to 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 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 conveyancer 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 valuation of the property at the conclusion of the transfer of equity transaction.
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 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 conveyancer 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.
