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Birmingham Midshires

Recently asked questions relating to Birmingham Midshires transfer of equity

  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with Birmingham Midshires?
  • My decree absolute has gone through as is the consent order. Now I need to sort out the transfer of equity on title deeds and the Birmingham Midshires mortgage. I have asked Birmingham Midshires for the transfer of equity application. What do I do now?
  • Can you tell me how to have someone removed off the title documents to a property where the home loan is with Birmingham Midshires
  • What do I do if I am unhappy with the conveyancer who undertook my transfer of equity conveyancing?
  • I got my Decree Absolute two years ago. I simply 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 full equity in my name (financial checks done). Does my ex need a solicitor?
  • I purchased a house with a friend five.seven years ago Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name comes off the Birmingham Midshires mortgage. There is a 30k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • My fiance and I have 50:50 shares in a investment property. I am a higher rate tax payer. Ideally I wish to do a transfer of equity to her sole name with a view to mitigate tax on rental income. Assuming Birmingham Midshires are fine with this the legal fees are not prohibitive. However what happens when we sell? As I would no longer be on the title documents am I giving up my CGT relief.

Examples of questions in a conveyancing solicitor questionnaire concerning a Birmingham Midshires Transfer of Equity

Is it the case that one of the registered proprietors died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Please give the details of anyone to be removed from the title deeds?

Please confirm if you are making any payment for the Transfer of Equity and to whom and specify any such sums?

Have you approached Birmingham Midshires to obtain consent to the Transfer of Equity

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

We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the Stamp Duty Land Tax Form)

Important warnings to consider in supporting the above Birmingham Midshires 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 Birmingham Midshires conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 strictly observed 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 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
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 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 conveyancer 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.


Frequently asked questions relating to Birmingham Midshires transfer of equity