Sample questions relating to MBS Lending Ltd transfer of equity

• Is stamp duty payable when it comes to an transfer of equity with a mortgage with MBS Lending Ltd?
• What if my application doesn't meet MBS Lending Ltd lending criteria for a transfer of equity?
• I am hoping to remortgage my flat in Romsey changing from Leeds Building Society to MBS Lending Ltd. The maisonette is jointly owned but propose for it to be in my name only once I remortgage. My wife has verbally consented to this and is happy to sign a form but neither of us want to incur lawyer fees.
• What can I do where I am dissatisfied with the lawyer who did our transfer of equity transaction?
• As things stand I have a joint MBS Lending Ltd mortgage with my brother and am looking into the possibility of him assuming responsibility for the whole mortgage and extracting myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is approx 175k, and the property value is about 600k. Is this a transfer of equity? Is stamp duty due?
• I am transferring my share of a property in Woodside to the other co-owners fiance, they are sticking with MBS Lending Ltd being the the existing lender. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this normally split or is one party liable for the fees for?
• MBS Lending Ltd have just agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?

Questions that your conveyancer could ask regarding your MBS Lending Ltd Transfer of Equity

General Advice to read in in addition 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

If your property is 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 freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a MBS Lending Ltd 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 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 contained within 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.