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Birmingham Midshires

Top seven questions relating to Birmingham Midshires transfer of equity

  • Can you tell me how to have a person removed off the title documents to a property if the mortgage is with Birmingham Midshires
  • My existing home loan is with Birmingham Midshires. Can I transfer equity to someone under 18 years old?
  • Have recently split up with my partner of twenty years. I'm now living with my parents again and she wishes to stay in the flat and pay me off. What portion am I entitled to. Is it half of the equity after discharging the mortgage with Birmingham Midshires? I assume proper valuations are required but I really need to be confident that I'm getting the best deal
  • What if my application doesn't meet Birmingham Midshires lending criteria for a transfer of equity?
  • How and when do I incur the Stamp Duty Land Tax payable for the transfer of equity in my home in my sole name which is happening at the same time as a remortgage via Birmingham Midshires?
  • As things stand I have a joint Birmingham Midshires mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, so as to enable me to purchase somewhere with my partner. The remaining mortgage is about 250k, and the property value is about 500k. Is this a transfer of equity? Is land tax involved?
  • Birmingham Midshires have just agreed I can take over the mortgage on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds on top?

Questions that your conveyancing solicitor may ask regarding your Birmingham Midshires Transfer of Equity

Please give the details of anyone to be added to the property title?

Please provide a copy of your National Insurance Number?

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what sums

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

Where you are adding a person 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” Questionnaire.

Has consent been obtained from Birmingham Midshires to the proposed transfer of equity?

General Advice to 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 titles

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with 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 as a result of 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 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 lawyer 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.

Content 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