Recently asked questions relating to First Direct transfer of equity

• My ex are planning to get a conveyancer in place for a remortgage with First Direct. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over UK. How necessary is it to instruct a lawyer local to us?
• What are my options where I am dissatisfied with the conveyancing solicitor who handled my transfer of equity conveyancing?
• At what stage do I pay stamp duty due for the transfer of equity in my home in my sole name which is happening simultaneously with a remortgage with First Direct?
• Me and my former husband and I are are looking to find an affordable conveyancing solicitor to help me sell in a transfer of equity and refinance with First Direct. I I am fearful of being overcharged and there are many conveyancing practices who do transfer of equity conveyancing to pick from...how do I know which to appoint?
• My friend and I got a joint mortgage with First Direct on a property in 2013. I am now thinking of purchasing a flat by myself and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential concerns with First Direct with him being on the hook for the total mortgage as opposed to only half of it?
• I am planning on removing a name from a joint mortgage and the First Direct need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Wakefield lawyer to deal with the transfer of equity? They need to be on the First Direct conveyancing panel.
• Can I transfer the equity held in my property with my First Direct mortgage?

Sample of information requested in a conveyancer form relating to First Direct Transfer of Equity

Important warnings to consider in supporting the above First Direct 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 Direct 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 conditions are not complied with you may be in violation 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 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 conveyancer 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a First Direct 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 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 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 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.