RBS- First Active transfer of equity example support desk enquires
- My partner and myself jointly own a buy to let. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name to mitigate tax on the letting income. If RBS- First Active are happy with this the legal fees are inexpensive. What are the implications when we sell? Would my GGT relief be lost.
- I am are seeking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with RBS- First Active. I I am concerned about by bill escalating out of control but with many conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to select?
- My RBS- First Active mortgage is in joint names with ex, he has agreed to come off the mortgage and let me have the property. RBS- First Active will permit the transfer of equity to me solely. Will RBS- First Active get in touch with my company to confirm my salary?
- What is the process for having a person removed from the title documents to a house where the home loan is with RBS- First Active
- How and when do I pay stamp duty chargeable for the transfer of equity in my property in my sole name which is happening simultaneously with a refinancing via RBS- First Active?
- I jointly own a house in Ampthill , with a RBS- First Active mortgage with my former partner. He and his new partner are going to buy me out. We had approval from RBS- First Active to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for RBS- First Active (supposedly). Is it possible for us to do the Land Registry formalities?
- I understand we would need at least AP1 and Transfer Deed. Is this true?
Information that may be required from your conveyancer may ask in relation to your RBS- First Active Transfer of Equity
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please give the details of anyone to be extracted from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Please give the details of anyone who jointly owns the premises with you?
Has consent been obtained from RBS- First Active to the proposed transfer of equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Important warnings to consider in supplemental the above RBS- First Active transfer of equity Info :
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
Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 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 valuation of the property at the time of completion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with RBS- First Active your property may be repossessed.
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 conveyancer 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 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.