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Recently asked questions relating to First Trust Bank transfer of equity

  • Is there such a thing a transfer of equity stamp duty calculator?
  • What are the average conveyancing charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to First Trust Bank - and have been quoted Three Hundred pounds including VAT by First Trust Bank's approved lawyer, Have I been over quoted?
  • First Trust Bank have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but is this a transfer of ownership of the house as well?
  • I got my Decree Absolute in 2011. For some reason I never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. First Trust Bank is willing to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
  • My mum died seven months ago leaving a unencumbered property to me and my step brother 50:50. Having continues to reside at the property, there was a clause in her will specifying that the propertycould not be sold for three years following her death so he could remain there for a while. He now wishes to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
  • My wife and I equally own a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity into her name with a view to mitigate tax on the letting income. Assuming First Trust Bank are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • My ex-wife and I are searching for a value for money conveyancing lawyer to help me sell in a transfer of equity and remortgage with First Trust Bank. I am aware of the chance of getting ripped off but with many conveyancing organisations who do transfer of equity conveyancing to pick from...how do I know which is best appoint?

Information that may be required from your conveyancer could ask in relation to your First Trust Bank Transfer of Equity

Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?

Please provide a copy of your National Insurance Number?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the 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?

Have you approached First Trust Bank to seek consent to the Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be added to the property title?

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

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 First Trust Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

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 conditions are not complied with you may be in breach 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 pursuant to 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 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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with First Trust Bank.

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 conveyancing solicitor 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 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.


Frequently asked questions relating to First Trust Bank transfer of equity