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RBS- First Active

Recently asked questions relating to RBS- First Active transfer of equity

  • RBS- First Active have just agreed I can take over the mortgage on my home. I had applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?
  • I plan to remortgage my flat in Blaenavon switching from Barnsley BS to RBS- First Active. The maisonette is currently in joint names but intend for it to be in my name only when I transfer. My wife is OK with this and is willing to sign a form but neither of us want to incur conveyancer fees.
  • As things stand I have a joint RBS- First Active mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy somewhere with my partner. The remaining mortgage is about 250k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
  • Our financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with RBS- First Active - Surely it’s advisable to just use them?
  • I am considering remortgaging my home in Crabtree does my lawyer have to be on the RBS- First Active Solicitor panel. The conveyancing also involves a transfer of equity.
  • I am completing a RBS- First Active transfer of equity request and have come to the part concerning defaults etc. There are some debts that I have been discharging since 2009, I understand that they no longer remain my credit rating. Am I obliged to declare these?
  • What are my options where I am unhappy with the conveyancing solicitor who undertook our transfer of equity transaction?

Information that may be required from your conveyancing solicitor could ask regarding your RBS- First Active Transfer of Equity

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

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

If you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please confirm where you are making any payment for the Transfer of Equity and to whom and notify us the amount?

Please provide the details of anyone to be added to the title deeds?

Is the transfer of equity subject to a court order? If yes please supply a copy

Important warnings to consider in further to the above RBS- First Active transfer of equity information :

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 have a license to do so from the landlord. If such restrictions are not strictly observed 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 time of completion 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 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 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.


Frequently asked questions relating to RBS- First Active transfer of equity