Recently asked questions relating to First Trust Bank transfer of equity
- I already have a mortgage with First Trust Bank and am retaining my existing mortgaging but seeking to have it in my sole name so my former partner won't be on it any longer. How long do First Trust Bank take to deal with the application?
- I am in the process of removing a name from a joint mortgage and the First Trust Bank require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Sedgefield
conveyancing solicitor to deal with the transfer of equity? They need to be on the First Trust Bank conveyancing panel.
- First Trust Bank yesterday agreed I can take over the home loan on the flat. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR on top?
- I own a house in Winchelsea
, with a First Trust Bank mortgage with my former husband. He and his new partner are going to buy me out. We had the go ahead from First Trust Bank to replace my name with hers. The transfer of equity has to be completed by a conveyancer for First Trust Bank (apparently). Can we deal with the Land Registry change?
- My fiance and I have equal shares in a investment property. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If First Trust Bank are happy with this the legal fees are not high. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
- My mortgage broker has suggested using their conveyancing solicitor for the Transfer of Equity plus remortgage with First Trust Bank - Is it not simpler easier to just use them?
- What should I be budgeting for when it comes to what solicitors costs are for a transfer of equity? I need to transfer equity and refinance - moving over to First Trust Bank - and have been quoted Four Hundred pounds excluding VAT by First Trust Bank's approved lawyer, Have I been over quoted?
Information that may be required from your lawyer could ask about your First Trust Bank Transfer of Equity
If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please provide the details of those who jointly own the property with you?
Have you approached First Trust Bank to obtain consent to the Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be extracted from the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please provide a copy of your National Insurance Number?
Information to consider in supporting the above First Trust Bank transfer of equity Questions and Answers :
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, provisions in 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 breach of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 is dependent on the valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with First Trust Bank your property may be repossessed.
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.
Information provided 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.