Birmingham Midshires transfer of equity: q and a’s
- I am selling my share of a house in Woodside to the other co-owners fiance, they are sticking with Birmingham Midshires being the the existing lender. We are debating as to who should cover the legal bill for the transfer of equity. Is this normally shared or is one party obliged to cover the fees for?
- I am in the process of removing a name from a joint mortgage and the Birmingham Midshires need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Romsey
conveyancer to deal with the transfer of equity? They need to be on the Birmingham Midshires conveyancing panel.
- My existing home loan is with Birmingham Midshires. Can I transfer equity to someone less than eighteen years old?
- I got divorced four years ago. Foolishly I never got around to transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Birmingham Midshires is content to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- Having been three years estranged I have made the decision to give up my interest in the flat to my husband who is re-mortgaging with Birmingham Midshires. Could this transfer of equity be completed inside one month?
- I purchased a flat with my brother five.seven years ago Since then, we have both got married. We are now intending to do a transfer of equity so my name is taken off the Birmingham Midshires mortgage. There is a meaningful difference between the value the lender say and what the property would sell for currently. Can you offer any advice?
- I recently bought a flat without my partner's name on the title documents. My conveyancing solicitor said it is due to the fact that she was not in the loan offer with Birmingham Midshires. I'm wondering is there any way that I can add her name on the title?
Examples of information requested in a conveyancing solicitor questionnaire relating to Birmingham Midshires Transfer of Equity
Has consent been obtained from Birmingham Midshires to the proposed transfer of equity?
Is there to be any consideration monies passing between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?
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?
Information to consider in supplemental the above Birmingham Midshires transfer of equity information :
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
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 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 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 valuation 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 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.
Content 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.