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MBS Lending Ltd transfer of equity: q and a’s

  • My partner and I have 50:50 shares in a BTL. I am a top rate tax payer. Ideally I would like to complete a transfer of equity into her name with a view to mitigate tax on the letting income. If MBS Lending Ltd are content with this the legal fees are inexpensive. What are the implications when we dispose of the property? As I would no longer be on the deeds would I lose my CGT relief.
  • My existing mortgage is with MBS Lending Ltd. Can I transfer equity to someone less than eighteen years old?
  • I am in the process of refinancing my flat in Rye does my lawyer have to be on the MBS Lending Ltd Solicitor panel. The conveyancing also involves a transfer of equity.
  • Me and my former partner and I are are looking to find a responsive conveyancing solicitor to help me sell in a transfer of equity and refinance with MBS Lending Ltd. I I am concerned about appointing the wrong one and there's lots of conveyancing practices who do transfer of equity conveyancing to choose from...who do I opt for?
  • My decree absolute has gone through as is the consent order. Now I must address the transfer of equity at the HMLR and the MBS Lending Ltd home loan. I have called MBS Lending Ltd for the transfer of equity application. What are my next steps?
  • At what point do I pay stamp duty payable for the transfer of equity in my property in my sole name which is happening at the same time as a switching mortgage with MBS Lending Ltd?
  • The mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with MBS Lending Ltd - won’t it be advisable to just instruct them?

Examples of questions in a lawyer form concerning a MBS Lending Ltd Transfer of Equity

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

If 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 provide the details of anyone to be added to 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?

Please inform us where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

Please provide the details of anyone who jointly owns the premises with you?

Information to consider in further to the above MBS Lending Ltd transfer of equity Advice :

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 titles

If your property is leasehold, 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 restrictions are not strictly observed you may be in violation of your covenants under 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 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 varies based on the valuation of the property at the time of completion 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 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.

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.


Frequently asked questions relating to MBS Lending Ltd transfer of equity