Common questions relating to First Trust Bank transfer of equity

• My wife and myself equally own a BTL. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name to mitigate tax on rental income. Assuming First Trust Bank are happy with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
• Will I incur any charges for a Transfer of Equity where the existing mortgage is with First Trust Bank?
• The financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with First Trust Bank - won’t it be advisable to just use them?
• Is it possible to apply to request more money from First Trust Bank as part of a Transfer of Equity?
• What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with First Trust Bank - and have been quoted £350 excluding VAT by First Trust Bank's appointed conveyancer, Have I been over quoted?
• My existing mortgage is with First Trust Bank. Can I transfer equity to someone less than eighteen years old?
• My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity at the HMLR and the First Trust Bank home loan. I have called First Trust Bank for the transfer of equity forms. What do I do now?

Examples of questions in a conveyancing solicitor form concerning a First Trust Bank Transfer of Equity

General Advice to read in supplemental the above First Trust Bank transfer of equity information :

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

If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of your covenants under 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 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 valuation of the property at the time of completion 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 lawyer 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.