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Birmingham Midshires transfer of equity: q and a’s

  • Can I transfer the equity held in my property with my Birmingham Midshires home loan?
  • When it comes to transfer of equity conveyancing involving refinance with Birmingham Midshires should I be charged 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
  • How do I go about adding or subtracting names (transfer of equity) to or from my Birmingham Midshires mortgage account?
  • Me and a friend got a joint mortgage with Birmingham Midshires on a flat in 2013. I am now thinking of purchasing a property on my own and my friend would like to buy me out. On the basis that we can settle on a price what are the next steps? Would there be any potential problem with Birmingham Midshires with him being solely liable for the total loan rather than only part of it?
  • I purchased a house with my cousin five.seven years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Birmingham Midshires mortgage. There is a significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
  • I plan to remortgage my home in Heathfield changing from Halifax to Birmingham Midshires. The flat is currently in joint names but intend for it to be in my sole name as and when I transfer. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to incur lawyer fees.
  • Is there such a thing a transfer of equity stamp duty calculator?

Information that may be required from your lawyer could ask in relation to your Birmingham Midshires Transfer of Equity

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Is the transfer of equity subject to a court order? If yes please supply a copy

Can you provide the details of those who jointly own the premises with you?

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

Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..

Information to consider in conjunction with the above Birmingham Midshires transfer of equity Advice :

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 properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
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 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 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