Frequently asked questions relating to RBS- First Active transfer of equity
- I am hoping to remortgage my flat in Wakefield
switching from HSBC to RBS- First Active. The maisonette is currently in joint names but intend for it to be in my sole name when I transfer. My wife has agreed to this and is happy to transfer equity but neither of us want to incur conveyancing solicitor charges.
- My brother and I got a joint mortgage with RBS- First Active on a property about a year ago. I am now looking to get a house on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential issue with RBS- First Active with him being on the hook for the total mortgage as opposed to only part of it?
- My partner and I equally own a BTL. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name in order mitigate tax on rental income. Assuming 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 disposing of my equity in house in Warwick to my co-owners husband, they are sticking with RBS- First Active being the the existing lender. We are debating as to who must cover the charges for the transfer of equity. Should this be shared or is one party liable for the costs of?
- When it comes to transfer of equity conveyancing involving a remortgage with RBS- First Active should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- RBS- First Active have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with RBS- First Active?
Information that may be required from your conveyancing solicitor could ask in relation to 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 give details of the amount?
Has consent been obtained from RBS- First Active to the proposed transfer of equity?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please give the name(s) and addresse(s) of those who jointly own the property with you?
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Please list all persons who occupy the property, their respective ages and relationships to you.
Information to consider in supplemental the above RBS- First Active transfer of equity Advice :
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, provisions in 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 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 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 market value of the property at the time of completion of the transfer of equity conveyancing.
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 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.
Information contained within 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.