Common questions relating to Birmingham Bank transfer of equity

• Me and my former partner and I are searching for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Birmingham Bank. I am aware of the dangers of getting ripped off and there are many conveyancing solicitors who do transfer of equity conveyancing out there...who do I opt for?
• Me and my partner co-own a property in Dunnington . Mortgage is with Birmingham Bank. I wish to transfer full ownership to him with no exchange of money but without using a lawyer. Is this likely to be straightforward?
• My mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with Birmingham Bank - won’t it be better to just instruct them?
• My Birmingham Bank home loan we jointly entered into with ex, who has agreed to come off the mortgage and let me have the property. Birmingham Bank will permit the transfer of equity to my individual name. Will Birmingham Bank call my boss to check my salary?
• I already have a mortgage with Birmingham Bank and am retaining my current mortgaging but seeking to have it in my name only so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Birmingham Bank - and have been quoted £350 plus VAT by Birmingham Bank's approved conveyancing solicitor, Is this is a good price or not?
• My father died seven months ago leaving a mortgage-free bungalow to me and my half brother in equal shared. Having continues to reside at the property, there was a condition in her will saying the premisescould not be sold for 24 months following her passing so he could continue to live there for a while. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the usual way to purchase my equity?

Sample of questions in a conveyancing solicitor form concerning a Birmingham Bank Transfer of Equity

Caveats to be read in supporting the above Birmingham Bank 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 Birmingham Bank conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may require that you have a license to do so from the freeholder. 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 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 Birmingham 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 Birmingham 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 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 Birmingham Bank 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 Birmingham 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 conveyancing solicitor 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.