Frequently asked questions relating to First Trust Bank transfer of equity
- I already have a home loan with First Trust Bank and am maintaining my existing mortgaging but applying to have have the equity transferred to my name only so my former partner won't be on it any longer. How long do First Trust Bank take to deal with the application?
- I am am in need of a conveyancer to handle my transfer of equity. First Trust Bank have been approached for a refinancing. I considered asking my financial adviser. I am lead to believe he will likely receive a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Any flaws you see in this way of thinking?
- Online research suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time switching mortgage with First Trust Bank
- What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I'm in the process of remortgaging - moving over to First Trust Bank - and have been quoted £350 including VAT by First Trust Bank's appointed lawyer, Is this a reasonable price?
- I am considering refinancing my home in Crabtree
does my lawyer have to be on the First Trust Bank Solicitor panel. The conveyancing also involves a transfer of equity.
- What if my application doesn't meet First Trust Bank lending criteria for a transfer of equity?
- My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity for the property and the First Trust Bank mortgage. I have asked First Trust Bank for the transfer of equity application. What do I do now?
Questions that your conveyancer could ask regarding your First Trust Bank Transfer of Equity
Please provide the details of anyone to be extracted from the title deeds?
Where you are adding someone 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.
Please let us know where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Can you provide the details of those who jointly own the premises with you?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Caveats to be read in supporting the above First Trust Bank 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 First Trust Bank conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
If your property is leasehold, provisions in the lease may require 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 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 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 lawyer will check with First Trust Bank 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 First Trust Bank 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 conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with First Trust Bank your property may be repossessed.
Preparing the Transfer of Equity with a First Trust Bank 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 First Trust Bank 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 lawyer 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 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.