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Top seven questions relating to First Direct transfer of equity

  • Have recently separated from my partner of thirty years. I'm now living with my mum and dad and she wishes to stay in the property and buy me out. What portion do I get. Is it 50% of the equity after discharging the First Direct home loan? I assume proper valuations are necessary but I would like ensure that I'm getting the best deal
  • How and when do I incur the Stamp Duty Land Tax due for the transfer of equity in my property in my sole name which is taking place simultaneously with a switching mortgage via First Direct?
  • I got my Decree Absolute in 2012. Foolishly I never got around to change the 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 Direct is willing to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
  • What is the process for adding or removing names (transfer of equity) to or from my First Direct mortgage account?
  • I am disposing of my share of a apartment in Hendon to my co-owners fiance, they are sticking with First Direct as the the existing mortgage company. We are debating as to who should pay the fees for the transfer of equity. Should this be split or is one party liable for the costs of?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with First Direct?
  • Given that we have been three years apart I have decided to transfer my interest in our property to my husband who is re-mortgaging with First Direct. Can a transfer of equity be done within four weeks?

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

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Please provide the details of anyone to be extracted from the property title?

Where you are adding a person on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please let us know where you are making any payment for the Transfer of Equity and to whom and disclose 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

Please give the details of those who jointly own the premises with you?

General Advice to read in further to the above First Direct transfer of equity Info :

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 Direct 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 require that you obtain the consent of the freeholder. 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 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 Direct 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 Direct 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 market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with First Direct your property may be repossessed.

Preparing the Transfer of Equity with a First Direct 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 Direct 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 conveyancer 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.


Frequently asked questions relating to First Direct transfer of equity