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Birmingham Midshires transfer of equity: q and a’s

  • When it comes to transfer of equity conveyancing involving refinance with Birmingham Midshires should I be paying VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • My fiance and I jointly own a BTL. I am a top rate tax payer. Ideally I would like to do a transfer of equity to her sole name with a view to mitigate tax on the letting income. Assuming Birmingham Midshires are fine with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
  • What is the process for adding or removing names (transfer of equity) to or from my Birmingham Midshires mortgage account?
  • My partner and I jointly own a house in Rye . Home loan is with Birmingham Midshires. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Is this likely to be easy to so?
  • What should I be budgeting for when it comes to what conveyancing charges are for a transfer of equity? I need to transfer equity and refinance - new loan with Birmingham Midshires - and have been quoted Four Hundred pounds plus VAT by Birmingham Midshires's appointed conveyancing solicitor, Is this is a good price or not?
  • Birmingham Midshires yesterday agreed I can take over the mortgage on the house. I had applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
  • My former husband are looking to get a conveyancer in place for a new mortgage with Birmingham Midshires. Transfer of Equity conveyancing is also requiredI have used the different comparison based websites and the results are from all over England and Wales. How necessary is it to instruct a conveyancer local to us?

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

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.

Please let us know where you are making any payment for the Transfer of Equity and to whom and specify the amount?

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

Where you are intent on holding 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 give the details of anyone to be added to the property title?

Information to consider in in addition to the above Birmingham Midshires transfer of equity Questions and Answers :

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 premises

Should the tenure of your property be 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 complied with you may be in breach of 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 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 varies based on the market value of the property at the conclusion of the transfer of equity conveyancing.
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 conveyancing solicitor 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 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.


Frequently asked questions relating to Birmingham Midshires transfer of equity