Frequently asked questions relating to Birmingham Midshires transfer of equity
- How and when do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my house in my name alone which is taking place simultaneously with a switching mortgage via Birmingham Midshires?
- Is there such a thing a transfer of equity stamp duty calculator?
- Online reading suggests that solicitors are more expensive than licensed conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I am transferring equity and at the same time remortgaging with Birmingham Midshires
- My brother and I got a joint mortgage with Birmingham Midshires on a house about a year ago. I am now thinking of buying a apartment on my own and my friend would like to buy me out. Once we have agreed a price where do we go? Is there likely to be any issue with Birmingham Midshires with him being responsible for the total mortgage rather than only part of it?
- What if my application doesn't meet Birmingham Midshires lending criteria for a transfer of equity?
- Birmingham Midshires have today agreed I can take over the mortgage on the flat. I previously applied for a transfer of equity but presumably there is a transfer of ownership at the Land Registry as well?
- My wife and myself have equal shares in a buy to let. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name with a view to mitigate tax on the letting income. If Birmingham Midshires are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
Examples of questions in a lawyer form relating to Birmingham Midshires Transfer of Equity
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 list all persons who occupy the property, their respective ages and relationships to you.
Who will be responsible for the costs of the Transfer of Equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Has consent been obtained from Birmingham Midshires to the proposed transfer of equity?
Important warnings to consider in further to 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 premises
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made as a result of 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 is dependent on the market value of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Birmingham Midshires.
Preparing the Transfer of Equity with a Birmingham Midshires Mortgage
When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.
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.