Frequently asked questions relating to Birmingham Midshires transfer of equity

• I already have a mortgage with Birmingham Midshires and am retaining my existing mortgaging but seeking to have have the equity transferred to my name only so my ex won't be on it any longer. How long does the whole transfer of equity process take?
• My former wife are looking to get a lawyer lined up for a new mortgage with Birmingham Midshires. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over the country. Is it important to have a conveyancing solicitor local to us?
• I currently have a joint Birmingham Midshires mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my partner. The remaining mortgage is in the region 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
• At what point do I incur the Stamp Duty Land Tax chargeable for the transfer of equity in my property in my sole name which is happening at the same time as a refinancing with Birmingham Midshires?
• Me and my former fiance and I are are looking to find an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Birmingham Midshires. I am aware of the chance of getting ripped off and there are many conveyancing solicitors who do transfer of equity conveyancing to pick from...who's the best?
• I am planning on removing a name from a joint mortgage and the Birmingham Midshires need me to use a lawyer to carry out the conveyancing. Can you recommend a reasonably priced Heathfield conveyancer to deal with the transfer of equity? They need to be on the Birmingham Midshires conveyancing panel.
• My financial adviser has recommended their conveyancer for our Transfer of Equity plus remortgage with Birmingham Midshires - Is it not simpler easier to just use them?

Questions that your conveyancing solicitor could ask about your Birmingham Midshires Transfer of Equity

General Advice to read in conjunction with the above Birmingham Midshires transfer of equity Questions and Answers :

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, provisions in the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in 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 lawyer 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 conclusion of the transfer of equity conveyancing.

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 conveyancer 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 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.