Birmingham Midshires transfer of equity example support desk enquires

• I got divorced in 2011. For some reason I never dealt with the transfer 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 needed. Birmingham Midshires is content to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
• I currently have a joint Birmingham Midshires mortgage with my step-brother and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my fiance. The outstanding mortgage is in the region 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
• Is it possible to transfer the equity held in my property with my Birmingham Midshires home loan?
• I am in the process of removing a name from a joint mortgage and the Birmingham Midshires require me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the Birmingham Midshires conveyancing panel.
• What if my application doesn't meet Birmingham Midshires lending criteria for a transfer of equity?
• What are the average conveyancing costs are for a transfer of equity? I'm in the process of remortgaging - new loan with Birmingham Midshires - and have been quoted £350 including VAT by Birmingham Midshires's appointed conveyancer, Is this a reasonable price?
• Can you tell me how to have a person removed from the deeds to a house if the home loan is with Birmingham Midshires

Sample of information requested in a lawyer form relating to Birmingham Midshires Transfer of Equity

Caveats to be read in conjunction with the above Birmingham Midshires transfer of equity Advice :

Tax and Legal

There are numerous potential 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 premises

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 landlord. If such terms are not adhered to you may be in violation 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 conveyancer 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 transaction.

Preparing the Transfer of Equity with a Birmingham Midshires 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 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 provided 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.