First Trust Bank transfer of equity example support desk enquires

• I am trying to find a conveyancer to handle my transfer of equity. First Trust Bank have been approached for a refinancing. I considered asking my mortgage broker. I understand he may receive a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Is my logic misguided?
• Is it possible to transfer the equity held in my property with my First Trust Bank home loan?
• I acquired a flat with a friend five.seven years ago Since buying the property, we have both got married. We are now seeking to do a transfer of equity so my name comes off the First Trust Bank mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• The financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with First Trust Bank - Is it not simpler better to just instruct them?
• I am searching for an affordable conveyancing solicitor to assist in a transfer of equity and refinance with First Trust Bank. I am aware of the risk of getting ripped off and there are various conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my First Trust Bank mortgage account?
• I currently have a joint First Trust Bank mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase a place with my partner. The outstanding mortgage is about 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?

Questions that your conveyancing solicitor is likely to ask in relation to your First Trust Bank Transfer of Equity

General Advice to read in in addition to the above First Trust Bank 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 First Trust Bank 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 have a requirement for notices to be served and that you have a license to do so from the landlord. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 market value of the property at the conclusion of the transfer of equity conveyancing.

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 contained within 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.