MBS Lending Ltd transfer of equity example support desk enquires
- I already have a home loan with MBS Lending Ltd and am maintaining my current mortgaging but seeking to have it in my name only so my former partner won't be on it any longer. How long do MBS Lending Ltd take to deal with the application?
- I am planning on removing a name from a joint mortgage and the MBS Lending Ltd need me to use a conveyancer to carry out the conveyancing. Can you recommend a reasonably priced Romsey
conveyancing solicitor to deal with the transfer of equity? They need to be on the MBS Lending Ltd conveyancing panel.
- Me and a friend got a joint mortgage with MBS Lending Ltd on a house in 2013. I am now looking to get a property by myself and my friend would like to buy me out. Once we have agreed an amount what happens next? Is there likely to be any problem with MBS Lending Ltd with him being solely liable for the total loan rather than only half of it?
- I recently bought a apartment without my partner's name on the title. My conveyancer claimed it is due to the fact that she was not in the mortgage with MBS Lending Ltd. I'm wondering is there any way that I can put her name on the title?
- I got divorced in 2011. Foolishly I never got around to transfer ownership from both our names to just in my name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. MBS Lending Ltd is willing to transfer the property and loan in my name (affordability checks done). Does she need a conveyancer?
- I intend to remortgage my flat in Rye
changing from Skipton to MBS Lending Ltd. The maisonette is jointly owned but I would like it to be in my name only when I remortgage. My former partner has verbally consented to this and is happy to sign a form but neither of us want to get a second lawyer involved.
- I currently have a joint MBS Lending Ltd mortgage with my brother and am investigating the feasibility of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to buy a place with my soon-to-be-wife. The remaining mortgage is approx 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
Information that may be required from your lawyer is likely to ask about your MBS Lending Ltd Transfer of Equity
If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Would you like us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
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 let us know if you are providing any payment for the Transfer of Equity and to whom and give details of any such sums?
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
General Advice to read in further to the above MBS Lending Ltd transfer of equity Questions and Answers :
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
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in 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 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 the time of completion of the transfer of equity conveyancing.
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 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 conveyancing solicitor 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 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.