Sample questions relating to RBS- First Active transfer of equity
- My former husband are seeking to get a conveyancing solicitor lined up for a remortgage with RBS- First Active. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over UK. Is it important to have a conveyancer local to us?
- I am searching for an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with RBS- First Active. I I am fearful of by bill escalating out of control but with plenty conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
- I currently have a joint RBS- First Active mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and removing myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is in the region 200k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty payable?
- My dad died last March leaving a unencumbered house to me and my step brother 50:50. He has always lived in the house, there was a clause in the will saying the housecould not be sold for 24 months after her death so he could reside there for a specified time frame. He now wishes to remain in the premises beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to acquire my equity?
- Can I transfer the equity held in my property with my RBS- First Active mortgage?
- My decree absolute has gone through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the RBS- First Active mortgage. I have called RBS- First Active for the transfer of equity forms. What do I do now?
- My fiance and myself equally own a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity into her name with a view to mitigate tax on the letting income. If RBS- First Active are happy with this the legal fees are inexpensive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
Information that may be required from your conveyancing solicitor is likely to ask in relation to your RBS- First Active Transfer of Equity
Has one of the registered proprietors died? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you give the details of those who jointly own the property with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Important warnings to consider in supporting the above RBS- First Active 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 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 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 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 is dependent on the market value of the property at the time of completion 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 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.