LenderPanel.com

Find a Law Firm for your Transfer of Equity approved by
Birmingham Midshires

Frequently asked questions relating to Birmingham Midshires transfer of equity

  • Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Birmingham Midshires?
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Birmingham Midshires?
  • My -ex-husband and I are in the market for a trustworthy conveyancing solicitor to help me sell in a transfer of equity and refinance with Birmingham Midshires. I I am concerned about by bill escalating out of control but with plenty conveyancing firms who do transfer of equity conveyancing to choose from...who's the best?
  • What are the average legal fees are for a transfer of equity? I'm in the process of remortgaging - new loan with Birmingham Midshires - and have been quoted £250 including VAT by Birmingham Midshires's appointed conveyancing solicitor, Is this is a good price or not?
  • My wife and myself jointly own a investment property. I am a higher rate tax payer. Ideally I would like to do a transfer of equity into her name with a view to reduce our tax on the letting income. If Birmingham Midshires are fine with this the legal fees are inexpensive. However what happens when we sell? Would my GGT relief be lost.
  • I co-own a property in Sedgefield , with a Birmingham Midshires mortgage with my former husband. Him and his fiance are going to buy me out. We had the go ahead from Birmingham Midshires to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Birmingham Midshires (supposedly). In order to save fees can I deal with the Land Registry change?

Questions that your conveyancer may ask regarding your Birmingham Midshires Transfer of Equity

Please give the name(s) and addresse(s) of anyone who jointly owns the property with you?

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

Who will be responsible for the costs of the Transfer of Equity?

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

Caveats to be read in conjunction with 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

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 terms are not adhered to you may be in violation of your covenants under the lease. This could trigger 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 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 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 valuation of the property at the conclusion 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 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.


Frequently asked questions relating to Birmingham Midshires transfer of equity