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First Trust Bank transfer of equity: q and a’s

  • What are the average solicitors charges 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 approved lawyer, Is this is a good price or not?
  • I purchased a flat with a friend five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the First Trust Bank mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • I got my Decree Absolute in 2012. For some reason I never dealt with the transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. First Trust Bank is happy to transfer the property and loan in my name (affordability checks done). Does my ex need a lawyer?
  • My partner and I co-own a flat in Rye . Home loan is with First Trust Bank. I would like to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be simple?
  • My First Trust Bank home loan is in joint names with ex, who has agreed to be removed and let me have the property. First Trust Bank have consented to the transfer of equity to me solely. Will First Trust Bank contact my employer to check my salary?
  • I co-own a house in Blaenavon , with a First Trust Bank loan with my ex husband. He and his new partner are going to acquire my share. We had consent from First Trust Bank to substitute my name with hers. The transfer of equity has to be completed by a lawyer for First Trust Bank (supposedly). Can we deal with the Land Registry formalities?
  • I plan to refinance my home in Wakefield moving from Virgin Money to First Trust Bank. The apartment is currently in joint names but intend for it to be in my name only as and when I transfer. My former partner has agreed to this and is happy to sign a form but neither of us want to get a second conveyancer involved.

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If 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 confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Please let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?

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

Information to consider 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 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.

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 conveyancing solicitor 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 finalisation of the transfer of equity conveyancing.
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 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 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.


Frequently asked questions relating to First Trust Bank transfer of equity