Remove someone from a Birmingham Midshires Mortgage using a transfer of equity
Birmingham Midshires transfer of equity is the process of adding or removing someone from an existing Birmingham Midshires mortgage account. (of course this applies to most other mortgage lenders in the UK).
BM Solutions are the mortgage lending arm of Birmingham Midshires (they are owned by the Halifax Group of companies). Birminham Midshires are an ‘intermediary’ only lender – they do not provide advice directly to customers. Birmingham Midshires mortgages for both existing and new customers are only available through independent financial advisers and dedicated mortgage advisers. BM Mortgage advisers have a dedicated BM Solutions adviser panel who are highly experienced, and provide dedicated mortgage advice.
How much does it cost to process an Equity Transfer ?
If you would like to add or remove someone from an existing Birmingham Midshires mortgage (also known as BM Mortgages or BM Solutions), our dedicated adviser panel offer this service for a fixed fee of £495
Why might I need an equity tranfser on my mortgage ?
The following circumstance changes may lead to existing BM Mortgage customers to want to request an equity transfer,
- Divorce or separation
- Deceased mortgage holder
- Parent transferring property to child or vice versa
- Splitting from an investment partner
- Dividing a portfolio for tax purposes
There may be a number of reasons for why you need to make changes to a mortgage for a transfer of equity. BM Solutions doesn’t allow you to simply request one owner/party to be removed (or added) from your buy to let mortgage. Our advisers have a simplified application process to ensure your equity transfer request is completed efficiently.
What else needs to happen to complete a tranfser of equity ?
As well as an application process with Birmingham Midshires which your adviser will make on your behalf. You will need to enlist a conveyancer to work with the land registry to complete forms to remove the party from the property deeds.
Conveyancer – we can assist in recommending a licenced solicitor/conveyancer who can complete this work. Typically conveyancers charge between £250 – £500 to complete this work. ( UK licensed conveyancers need to be approved by the SRA – Solicitors Regulatory Authority, a list of approved conveyancers can be found here https://www.sra.org.uk/ )
HM Land Registry – This is a UK governement department that holds records of property ownership in the UK. Typically a TR1 form (land transfer form) is submitted to the Land Registry to make changes to the property deeds. ( more information on the land regsitry can be found here www.government/organisations/land-registry )
Removing a party from an existing mortgage is known as an ‘equity transfer’ (as you are staying with the existing mortgage company)
Adding a party to a mortgage, generally results in a ‘Remortgage’ transaction. Essentially you are remortgaging away from your existing mortgage lender and applying for a new joint mortgage with a different mortgage lender.
If you are going through or have gone through a relationship breakdown, you will have decided how to divide your property. The leaving party will need to be removed from the property deeds and the terms and conditions of the mortgage, which is where the transfer of equity takes place.
Similarly, if you have a property jointly owned with a parent or sibling, or even a business partner, and again wish to separate your assets where one party wants to be removed, this will be done via an equity transfer remortgage.
When the original mortgage was taken out, BM Solutions will have assessed the mortgage based on your joint affordability and suitability. With a change of ownership, a new assesment is needed along with the transfer of equity. BM Solutions will need to ensure the new mortgage is affordable for you as the remaining owner, and that their lending criteria is met.
We can assist with Equity Transfer requests for Birmingham Midshires clients ONLY on BTL mortgage/properties in JOINT names.
If you would like to ADD a party to an existing mortgage, (or if you have a residential/owner occupier Birmingham Midshires mortgage – we can also assist in this transaction. This will essentially be a remortgage transaction.
Make your Equity Transfer request with us,
You can use the enquiry form below to to start your equity transfer request. Our advisers will query your BM account and come back to you with a status of your account and discuss your options.
Use the form below to send us your remortgage enquiry
As part of the transfer of equity aplication, our advisers can also review your current mortgage rates to ensure you are on the best available mortgage product. You can see a list of available mortgage rates from Birmingham Midshires here.