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MBS Lending Ltd

Frequently asked questions relating to MBS Lending Ltd transfer of equity

  • Me and my former partner and I are are seeking to find an affordable conveyancing lawyer to assist in a transfer of equity and refinance with MBS Lending Ltd. I want to avoid being ripped off and there are various conveyancing practices who do transfer of equity conveyancing to choose from...how do I know which one to appoint?
  • I understand we would need at least AP1 and Transfer Deed. Is this true?
  • I plan to refinance my apartment in Crabtree changing from Birmingham Midshires to MBS Lending Ltd. The flat is jointly owned but propose for it to be in my name only when I transfer. My former partner has agreed to this and is willing to transfer equity but neither of us want to incur conveyancer charges.
  • Is there such a thing a transfer of equity stamp duty calculator?
  • My wife and I have equal shares in a BTL. I am a higher rate tax payer. Preferably I wish to complete a transfer of equity into her name to reduce our tax on the letting income. Assuming MBS Lending Ltd are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
  • What if my application doesn't meet MBS Lending Ltd lending criteria for a transfer of equity?
  • My financial adviser has suggested using their conveyancer for the Transfer of Equity plus remortgage with MBS Lending Ltd - won’t it be better to just use them?

Examples of questions in a conveyancing solicitor questionnaire concerning a MBS Lending Ltd Transfer of Equity

Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Please let us know if you are providing any payment for the Transfer of Equity and to whom and notify us the amount?

Who will be responsible for the costs of the Transfer of Equity?

Please provide the name(s) and addresse(s) of anyone to be removed from the title deeds?

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Caveats to be read in conjunction with the above MBS Lending Ltd 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 MBS Lending Ltd conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 situations, 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 MBS Lending Ltd 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 MBS Lending Ltd 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with MBS Lending Ltd your property may be repossessed.

Preparing the Transfer of Equity with a MBS Lending Ltd 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 MBS Lending Ltd 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 conveyancing solicitor 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.


Frequently asked questions relating to MBS Lending Ltd transfer of equity