Questions and answers: First Direct transfer of equity

• Can I apply to borrow more money from First Direct as part of a Transfer of Equity?
• Have recently split up with my ex of thirty years. I'm now back with my parents again and she wants to stay in the apartment and pay me off. What portion am I entitled to. Is it 50% of the equity after discharging the First Direct home loan? I assume proper valuations are required but I would like to be sure that I'm getting what I am entitled to
• My First Direct mortgage we jointly entered into with ex, he has agreed to come off the mortgage and let me have the property. First Direct will permit the transfer of equity to my individual name. Do First Direct contact my boss to check my salary?
• When it comes to transfer of equity conveyancing involving a remortgage with First Direct should I be charged VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• My brother and I got a joint mortgage with First Direct on a house about a year ago. I am now looking to get a property on my own and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Is there likely to be any issue with First Direct with him being solely liable for the total loan rather than only half of it?
• I am in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with First Direct. I really don't want to get ripped off and there's plenty conveyancing firms who do transfer of equity conveyancing out there...who's the best?
• Will I incur any charges for a Transfer of Equity where the existing home loan is with First Direct?

Questions that your conveyancing solicitor may ask regarding your First Direct Transfer of Equity

Information to consider in in addition 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 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 obtain the consent of the freeholder. If such terms are not adhered to you may be in violation of 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 conveyancing solicitor 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 valuation of the property at the conclusion 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 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 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.