Examples of recent questions relating to RBS- First Active transfer of equity
- Will I incur any fees for a Transfer of Equity where the existing mortgage is with RBS- First Active?
- My wife and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name to reduce our tax on the letting income. If RBS- First Active are fine with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
- My current mortgage is with RBS- First Active. Can I transfer equity to someone who is not yet eighteen years old?
- I currently have a joint RBS- First Active mortgage with my cousin and am looking into the option of him taking on the whole mortgage and removing myself from it, so as to enable me to buy somewhere with my soon-to-be-wife. The remaining mortgage is in the region 200k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
- Is it possible to transfer the equity held in my property with my RBS- First Active home loan?
- I jointly own a house in Crabtree
, with a RBS- First Active loan with my ex husband. Him and his new partner are going to buy me out. We had approval from RBS- First Active to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for RBS- First Active (supposedly). Is it possible for us to do the Land Registry change?
- Law month I split up with my partner of thirty years. I'm now living with my mum and dad and she wishes to remain in the property and pay me off. What percentage am I entitled to. Is it half of the equity after paying off the mortgage with RBS- First Active? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
Information that may be required from your conveyancing solicitor is likely to ask regarding your RBS- First Active Transfer of Equity
Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Please give the details of anyone to be added to the property title?
Who will be responsible for the costs of the Transfer of Equity?
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Information to consider in further to the above RBS- First Active transfer of equity Questions and Answers :
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
If your property is leasehold, the lease may have a requirement for notices to be served and 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.
If the transfer of equity is made as a result of 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 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 valuation 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 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.