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RBS- First Active

Top seven questions relating to RBS- First Active transfer of equity

  • My dad passed away last January leaving a unencumbered property to me and my half brother 50:50. Having continues to reside at the house, there was a provision in the will specifying that the premisescould not be sold for 2 years following her death so he could remain there for a specified time frame. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the conventional way to purchase my equity?
  • My divorce is through as is the consent order. Now I have to address the transfer of equity on title deeds and the RBS- First Active home loan. I have contacted RBS- First Active for the transfer of equity application. What do I do now?
  • I am planning on 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 Winchelsea lawyer to deal with the transfer of equity? They need to be on the RBS- First Active conveyancing panel.
  • Am I best advised cancel the direct debit for my mortgage with RBS- First Active once a date for my remortgage and transfer of equity has been agreed?
  • My wife and myself have 50:50 shares in a buy to let. I am a top rate tax payer. Ideally I would like to do 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 high. What are the implications when we sell? As I would no longer be on the title documents am I giving up my CGT relief.
  • I acquired a house with my cousin five.seven years ago Since purchasing the property, we have both got married. We are now seeking 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 bank say and what the property would sell for currently. Can you offer any advice?
  • I plan to refinance my apartment in Littleborough moving from Santander to RBS- First Active. The apartment is currently in joint names but wish for it to be in my sole name as and when I remortgage. My husband is OK with this and is willing to transfer equity but neither of us want to get a second lawyer involved.

Examples of information requested in a conveyancer questionnaire concerning a RBS- First Active Transfer of Equity

Please let us know if you are making any payment for the Transfer of Equity and to whom and give details of any such sums?

Please provide a copy of your National Insurance Number?

Who will be responsible for the costs of the Transfer of Equity?

Please give the name(s) and addresse(s) of anyone to be removed from the property title?

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach 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 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 conveyancing solicitor 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.
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 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.

Information provided 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. 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