Top seven questions relating to MBS Lending Ltd transfer of equity
- Been looking at consumer blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and simultaneously remortgaging with MBS Lending Ltd
- I plan to refinance my apartment in Winchelsea
changing from Natwest to MBS Lending Ltd. The home is jointly owned but propose for it to be in my sole name once I transfer. My wife is OK with this and is willing to transfer equity but neither of us want to incur conveyancer charges.
- What should I be budgeting for when it comes to what solicitors fees are for a transfer of equity? I'm in the process of remortgaging - moving over to MBS Lending Ltd - and have been quoted Three Hundred pounds excluding VAT by MBS Lending Ltd's appointed conveyancing solicitor, Is this a reasonable price?
- My ex are looking to get a conveyancing solicitor lined up for a new mortgage with MBS Lending Ltd. Transfer of Equity conveyancing is also neededI have used the different rating based services and the results are from all over England and Wales. Do we need to have a conveyancer local to us?
- My MBS Lending Ltd home loan we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. MBS Lending Ltd will permit the transfer of equity to me solely. Do MBS Lending Ltd contact my company to check my salary?
- I am in the process of removing a name from a joint mortgage and the MBS Lending Ltd require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Littleborough
conveyancing solicitor to deal with the transfer of equity? They need to be on the MBS Lending Ltd conveyancing panel.
- As things stand I have a joint MBS Lending Ltd mortgage with my cousin and am looking into the option of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The remaining mortgage is in the region 175k, and the property value is about 500k. Is this a transfer of equity? Is stamp duty involved?
Examples of information requested in a conveyancing solicitor form concerning a MBS Lending Ltd Transfer of Equity
Would you like us to draft you Declaration of Trust. If so are you happy to incur the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Can you give the details of those who jointly own the premises with you?
Information to consider in supporting the above MBS Lending Ltd transfer of equity information :
Tax and Legal
There are numerous potential 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 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 potentially result in the freeholder taking enforcement action against you.
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 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 conveyancer 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with MBS Lending Ltd.
Preparing the Transfer of Equity with a MBS Lending Ltd Mortgage
When it comes to preparing the the Land Registry documents your conveyancer 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 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.