Recently asked questions relating to Birmingham Midshires transfer of equity
- I am looking for a conveyancing solicitor to deal with my transfer of equity. Birmingham Midshires have been approached for a refinancing. I thought of asking my financial adviser. I understand he may get a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- My partner and I jointly own a flat in Blaenavon
. Home loan is with Birmingham Midshires. I would like to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be straightforward?
- My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity for the property and the Birmingham Midshires home loan. I have contacted Birmingham Midshires for the transfer of equity forms. What are my next steps?
- Me and a friend got a joint mortgage with Birmingham Midshires on a house in 2013. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential issue with Birmingham Midshires with him being solely liable for the total loan as opposed to only half of it?
- I am filling out a Birmingham Midshires transfer of equity form and have arrived at the part regarding defaults etc. I do some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit score. Am I obliged to disclose these?
- Our financial adviser has recommended their conveyancing solicitor for the Transfer of Equity plus remortgage with Birmingham Midshires - won’t it be advisable to just instruct them?
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
Questions that your conveyancing solicitor could ask in relation to your Birmingham Midshires Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Has one of the registered owners passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Has consent been obtained from Birmingham Midshires to the proposed transfer of equity?
Is the transfer of equity subject to a court order? If yes please supply a copy
If 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?
Will there be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive the same
Information to consider in supplemental the above Birmingham Midshires transfer of equity Info :
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
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 the lease. This could trigger 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 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 finalisation of the transfer of equity transaction.
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 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 lawyer 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.