Common questions relating to RBS- First Active transfer of equity

• My ex-partner and I are in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with RBS- First Active. I am aware of the risk of getting ripped off and there's plenty conveyancing practices who do transfer of equity conveyancing out there...who do I opt for?
• I own a flat in Littleborough , with a RBS- First Active mortgage with my ex partner. Him and his new partner are going to buy me out. We had the go ahead from RBS- First Active to replace my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for RBS- First Active (apparently). Can we do the Land Registry formalities?
• Our mortgage broker has suggested using their lawyer for the Transfer of Equity plus remortgage with RBS- First Active - won’t it be easier to just use them?
• I am transferring my share of a house in Birmingham to my co-owners fiance, they are reapplying to RBS- First Active. We are debating as to who should cover the charges for the transfer of equity. Should this be split or is one of us obliged to cover the charges for?
• What do I do if I am dissatisfied with the conveyancer who conducted our transfer of equity transaction?
• At what stage do I pay the Stamp Duty Land Tax due for the transfer of equity in my house in my sole name which is taking place at the same time as a remortgage via RBS- First Active?
• I am in the process of removing a name from a joint mortgage and the RBS- First Active require me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Rye conveyancer to deal with the transfer of equity? They need to be on the RBS- First Active conveyancing panel.

Questions that your conveyancer could ask regarding your RBS- First Active Transfer of Equity

Information to consider in further 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 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 breach of the lease. This could potentially result in 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 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 conveyancing.

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 conveyancing solicitor 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.