First Trust Bank transfer of equity example support desk enquires

• First Trust Bank have today agreed I can take over the mortgage on my home. I have applied for a transfer of equity but is this a transfer of ownership at the Land Registry on top?
• Law week I separated from my ex of twenty years. I'm now back with my parents again and she wishes to stay in the property and buy me out. What percentage do I get. Is it 50% of the equity after discharging the First Trust Bank home loan? I assume proper valuations are required but I would like to be sure that I'm getting I am not being walked over
• My First Trust Bank mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and let me have the property. First Trust Bank will permit the transfer of equity to me solely. Will First Trust Bank call my company to check my salary?
• My mum died early last year leaving a loan-free bungalow to me and my half brother in equal shared. Having continues to reside at the premises, there was a condition in her will specifying that the housecould not be sold for 2 years following her death so he could continue to live there for a while. He now wants to remain in the property beyond the prescribed period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a mortgage in the traditional way to buy my equity?
• I purchased a house with a friend six years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the First Trust Bank mortgage. There is a 40k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• I got my Decree Absolute in 2010. Foolishly I never dealt with the transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. First Trust Bank is happy to transfer the property and loan in my name (financial checks done). Does she need a conveyancer?
• I am refinancing my flat in Witham does my lawyer need to be on the First Trust Bank Solicitor panel. The conveyancing also involves a transfer of equity.

Sample of information requested in a conveyancer form concerning a First Trust Bank Transfer of Equity

Important warnings to consider in supplemental 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 titles

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in 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 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 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 finalisation 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 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 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.