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

• I understand we would need at least AP1 and TR1. Is this true?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with First Trust Bank?
• I am filling out a First Trust Bank transfer of equity request and have arrived at the section concerning debts etc. There are some debts that I have been reducing since 2009, in fact they have long since disappeared from my credit rating. Must I set these out?
• My partner and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to reduce our tax on rental income. If 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.
• At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is happening at the same time as a remortgage with First Trust Bank?
• I own a flat in Sedgefield , with a First Trust Bank loan with my former partner. Him and his new partner are going to acquire my share. We had consent from First Trust Bank to remove my name with hers. The transfer of equity has to be done by a lawyer for First Trust Bank (apparently). Is it possible for us to deal with the Land Registry formalities?
• I am transferring my equity in apartment in Warwick to the other co-owners husband, they are reapplying to First Trust Bank. We are haggling as to who should pay the charges for the transfer of equity. Is this usually shared or is one party liable for the charges for?

Sample 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 have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with 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 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 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 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 lawyer 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.