MBS Lending Ltd transfer of equity: q and a’s
- Will I incur any fees for a Transfer of Equity where the existing home loan is with MBS Lending Ltd?
- Me and my partner co-own a property in Witham
. Mortgage is with MBS Lending Ltd. I would like to transfer full ownership to him with no payment of money but without using a conveyancer. Is this likely to be straightforward?
- Law week I separated from my partner of 18 years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the MBS Lending Ltd home loan? I assume proper valuations are required but I would like to be confident that I'm getting what I am entitled to
- My dad passed away last March leaving a mortgage-free bungalow to me and my half brother 50:50. Having continues to reside at the premises, there was a clause in the will specifying that the premisescould not be sold for three years after her death so he could reside there for a prescribed period. He now wishes to remain in the premises beyond the specified period. We have considered a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to purchase my share?
- I am answering a MBS Lending Ltd transfer of equity application and have come to the questions regarding debts etc. There are some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit score. Must I disclose these?
- I currently have a joint MBS Lending Ltd mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is approx 200k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty payable?
- I am in the process of mortgaging my property in Littleborough
does my lawyer have to be on the MBS Lending Ltd Solicitor panel. The conveyancing also involves a transfer of equity.
Examples of information requested in a conveyancing solicitor form relating to MBS Lending Ltd Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
We need you to provide the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Has consent been obtained from MBS Lending Ltd to the proposed transfer of equity?
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
General Advice to read in supplemental 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 titles
Should the tenure of your property be leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach 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 lawyer 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.
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 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 lawyer 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 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.