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Birmingham Bank

Common questions relating to Birmingham Bank transfer of equity

  • My Birmingham Bank mortgage we jointly entered into with ex, who is agreeable to come off the mortgage and let me have the property. Birmingham Bank will permit the transfer of equity to me solely. Do Birmingham Bank write my company to verify my salary?
  • At what stage do I incur stamp duty chargeable for the transfer of equity in my property in my name alone which is taking place simultaneously with a remortgage via Birmingham Bank?
  • Have recently split up with my partner of 18 years. I'm now living with my parents again and she wants to remain in the flat and buy me out. What portion do I get. Is it half of the equity after discharging the Birmingham Bank home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
  • My wife and myself jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name in order reduce our tax on rental income. Assuming Birmingham Bank are content with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
  • I already have a home loan with Birmingham Bank and am keeping my existing mortgaging but wish to have it in my sole name so my former wife will no longer be on the mortgage. How long does the whole transfer of equity process take?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Birmingham Bank?
  • I plan to refinance my maisonette in Timperley switching from HSBC to Birmingham Bank. The home is currently in joint names but wish for it to be in my name only when I switch. My former partner is OK with this and is happy to sign a form but neither of us want to incur conveyancing solicitor fees.

Examples of information requested in a lawyer form relating to Birmingham Bank Transfer of Equity

Has one of the registered owners died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Please let us know of you wish us to prepare Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Please give the details of those who jointly own the property with you?

Important warnings to consider 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 titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to 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 is dependent on the valuation of the property at the conclusion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Birmingham Bank your property may be repossessed.

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 conveyancer 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.


Frequently asked questions relating to Birmingham Bank transfer of equity