First Direct transfer of equity example support desk enquires
- I jointly own a flat in Miles Platting
, with a First Direct mortgage with my ex partner. Him and his fiance are going to acquire my share. We had approval from First Direct to replace my name with hers. The transfer of equity has to be done by a lawyer for First Direct (supposedly). In order to save fees can I do the Land Registry change?
- My current mortgage is with First Direct. Can I transfer equity to someone who is not yet eighteen years old?
- Can I apply to request a further advance from First Direct as part of a Transfer of Equity?
- Law month I split up with my ex of 18 years. I'm now back with my parents again and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it 50% of the equity after paying off the mortgage with First Direct? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to
- Me and my partner jointly own a flat in Witham
. Mortgage is with First Direct. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
- My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the First Direct home loan. I have contacted First Direct for the transfer of equity application. What happens next?
- Me and a friend got a joint mortgage with First Direct on a house a couple of years ago. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a figure what are the next steps? Would there be any potential issue with First Direct with him being responsible for the total loan rather than only half of it?
Information that may be required from your conveyancer could ask about your First Direct Transfer of Equity
Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Please provide the details of anyone to be added to the title deeds?
Please give the details of anyone to be extracted from the property title?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Caveats to be read in further to the above First Direct 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 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 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 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 varies based on the valuation of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with First Direct.
Preparing the Transfer of Equity with a First Direct Mortgage
When it comes to preparing the the Land Registry documents your conveyancer 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.
Information contained within 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.
