Birmingham Midshires transfer of equity example support desk enquires
- I already have a home loan with Birmingham Midshires and am retaining my existing mortgaging but wish to have it in my sole name so my former wife will be removed from the deeds. How long does the whole transfer of equity process take?
- My mum passed away half a year ago leaving a mortgage-free house to me and my brother equally. Having continues to reside at the premises, there was a condition in the will saying the housecould not be sold for three years after her passing so he could remain there for a prescribed period. He now wants 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 acquire my half from me?
- I am disposing of my share of a house in Woodside to the other co-owners fiance, they are sticking with Birmingham Midshires as the the existing mortgage company. We are haggling as to who should cover the charges for the transfer of equity. Is this usually split or is one party liable for the charges for?
- I got my Decree Absolute in 2011. I simply never dealt with the change the ownership from the current 'joint' status to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Birmingham Midshires is content to transfer the full equity in my name (affordability checks done). Does she need a conveyancer?
- Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Birmingham Midshires?
- I am trying to find a lawyer to undertake my transfer of equity. Birmingham Midshires are dealing with the refinancing. I considered asking my financial adviser. I understand he may get a kickback for suggesting a firm, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
- As things stand I have a joint Birmingham Midshires mortgage with my brother and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 200k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty payable?
Questions that your conveyancing solicitor could ask about your Birmingham Midshires Transfer of Equity
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
If 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” Form.
Please provide the name(s) and addresse(s) of those who jointly own the property with you?
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in conjunction with the above Birmingham Midshires 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 Midshires 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 have a requirement for notices to be served and that you obtain the consent of 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.
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 lawyer will check with Birmingham Midshires 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 Midshires 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.
If you do not keep up the payments on your mortgage with Birmingham Midshires your property may be repossessed.
Preparing the Transfer of Equity with a Birmingham Midshires Mortgage
When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Birmingham Midshires 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 should not be regarded as 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.