Examples of recent questions relating to RBS- First Active transfer of equity

• My mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with RBS- First Active - Is it not simpler advisable to just use them?
• I got my Decree Absolute in 2012. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. RBS- First Active is content to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
• Me and a friend got a joint mortgage with RBS- First Active on a house a couple of years ago. I am now looking to get a flat by myself and my friend would like to buy me out. Once we have agreed an amount what are the next steps? Is there likely to be any problem with RBS- First Active with him being on the hook for the total mortgage rather than only half of it?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with RBS- First Active?
• How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place at the same time as a remortgage via RBS- First Active?
• I am selling my equity in house in Warwick to the other co-owners fiance, they are reapplying to RBS- First Active. We are debating as to who must cover the legal bill for the transfer of equity. Should this be shared or is one of us obliged to cover the legal bill?
• Me and my former partner and I are searching for a responsive conveyancing lawyer to assist in a transfer of equity and refinance with RBS- First Active. I want to avoid being ripped off but with so many conveyancing solicitors who do transfer of equity conveyancing to pick from...who do I opt for?

Questions that your conveyancing solicitor may ask regarding your RBS- First Active Transfer of Equity

Important warnings to consider in conjunction with 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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of the lease. This could trigger 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

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

When it comes to preparing the the Land Registry documents your conveyancer 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.

Content on 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.