Frequently asked questions relating to Birmingham Midshires transfer of equity
- I am answering a Birmingham Midshires transfer of equity form and have come to the section concerning defaults etc. There are some debts that I have been clearing over a long period, in fact they no longer remain my credit rating. Do I need to disclose these?
- Two years ago I purchased a house without my wife's name on the ownership paperwork. My lawyer advised it is due to the fact that she was not in the loan offer with Birmingham Midshires. Is it possible for me to put her name on the documents at HM Land Registry?
- I bought a flat with a friend in 2010 Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Birmingham Midshires mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My partner and I jointly own a flat in Littleborough
. Mortgage is with Birmingham Midshires. I would like to transfer full ownership to him with no payment of money but without using a lawyer. Do you think this should be straightforward?
- I am mortgaging my flat in Rye
does my lawyer have to be on the Birmingham Midshires Solicitor panel. The conveyancing also involves a transfer of equity.
- Me and a friend got a joint mortgage with Birmingham Midshires on a house about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Once we have agreed a price what happens next? Would there be any potential problem with Birmingham Midshires with him being on the hook for the total loan rather than only part of it?
- Birmingham Midshires yesterday agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership at HMLR as well?
Sample of information requested in a conveyancing solicitor questionnaire concerning a Birmingham Midshires Transfer of Equity
Have you approached Birmingham Midshires to obtain consent to the Transfer of Equity
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Where you are adding someone 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 give the details of anyone to be added to the property title?
Please give the name(s) and addresse(s) of anyone to be extracted from the title deeds?
Would you like us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Important warnings to consider in supplemental the above Birmingham Midshires transfer of equity information :
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 properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of 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 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 is dependent 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 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 conveyancing solicitor 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 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.