Common questions relating to RBS- First Active transfer of equity

• Is it sensible to stop my mortgage payments with RBS- First Active as soon as a date for my remortgage and transfer of equity has been set?
• My brother and I got a joint mortgage with RBS- First Active on a apartment about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any problem with RBS- First Active with him being responsible for the total mortgage rather than only half of it?
• I co-own a flat in Dunnington , with a RBS- First Active loan with my former husband. He and his fiance are going to acquire my share. We had approval from RBS- First Active to substitute my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for RBS- First Active (supposedly). In order to save fees can I do the Land Registry change?
• I am trying to find a conveyancer to handle my transfer of equity. RBS- First Active are dealing with the remortgage. I considered asking my financial adviser. I understand he will likely receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic flawed?
• My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with RBS- First Active - Is it not simpler easier to just use them?
• My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity at the HMLR and the RBS- First Active home loan. I have asked RBS- First Active for the transfer of equity forms. What are my next steps?
• I am considering mortgaging my flat in Witham does my lawyer have to be on the RBS- First Active Solicitor panel. The conveyancing also involves a transfer of equity.

Questions that your conveyancer could ask regarding your RBS- First Active Transfer of Equity

Important warnings to consider in supplemental 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 titles

If your property is 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 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 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 time of completion of the transfer of equity transaction.

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 conveyancing solicitor 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 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.