Top seven questions relating to RBS- First Active transfer of equity

• Law month I split up with my partner of twenty years. I'm now living with my parents again and she wants to stay in the apartment and pay me off. What percentage am I entitled to. Is it 50% of the equity after redeeming the RBS- First Active home loan? I assume proper valuations are necessary but I would like to be sure that I'm getting what I am entitled to
• What can I do where I am unhappy with the conveyancer who handled our transfer of equity transaction?
• My former wife are planning to get a conveyancing solicitor in place for a new mortgage with RBS- First Active. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over England and Wales. Do we need to appoint a lawyer local to us?
• I am filling out a RBS- First Active transfer of equity application and have arrived at the questions that asks about defaults etc. I do some debts that I have been paying off for a number of years, in fact they have long since disappeared from my credit records. Do I need to declare these?
• Am I best advised stop the direct debit for my mortgage with RBS- First Active once a date for my remortgage and transfer of equity has been set?
• My fiance and myself jointly own a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to mitigate tax on rental income. Assuming RBS- First Active are fine with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
• After a number of years apart I have made the decision to give up my share of our house to my husband who is re-mortgaging with RBS- First Active. Can a transfer of equity be done in 28 days?

Sample of questions in a conveyancer questionnaire relating to RBS- First Active Transfer of Equity

Caveats to be read in in addition to the above RBS- First Active 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 RBS- First Active conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach 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 situations, 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 RBS- First Active 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 RBS- First Active 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 transaction.

Preparing the Transfer of Equity with a RBS- First Active 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 RBS- First Active 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.