Common questions relating to First Trust Bank transfer of equity

• Is stamp duty payable when it comes to an transfer of equity with a mortgage with First Trust Bank?
• Been looking at consumer blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously refinancing with First Trust Bank
• I intend to remortgage my flat in Ampthill switching from Virgin Money to First Trust Bank. The flat is jointly owned but propose for it to be in my sole name when I remortgage. My wife is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
• My former husband are seeking to get a lawyer lined up for a new mortgage with First Trust Bank. Transfer of Equity conveyancing is also necessaryI have used the different rating based services and the results are from all over UK. How necessary is it to have a conveyancing solicitor local to us?
• My ex-wife and I are searching for a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with First Trust Bank. I I am concerned about by bill escalating out of control but with plenty conveyancing organisations who do transfer of equity conveyancing out there...who's the best?
• Am I best advised stop the direct debit for my mortgage with First Trust Bank as soon as a date for my remortgage and transfer of equity has been agreed?
• I am selling my share of a apartment in Hendon to the other co-owners husband, they are reapplying to First Trust Bank. We are in heated discussion as to who should pay the legal bill for the transfer of equity. Should this be split or is one party obliged to cover the costs of?

Examples of information requested in a conveyancer questionnaire concerning a First Trust Bank Transfer of Equity

General Advice to read in supporting the above First Trust Bank 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 Trust Bank 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 require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 conveyancer will check with First Trust Bank 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 Trust Bank 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 finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a First Trust Bank 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 Trust Bank 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.