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MBS Lending Ltd

Top seven questions relating to MBS Lending Ltd transfer of equity

  • At what stage do I pay stamp duty payable for the transfer of equity in my house in my sole name which is happening at the same time as a refinancing with MBS Lending Ltd?
  • My former wife are planning to get a conveyancer lined up for a remortgage with MBS Lending Ltd. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over the country. How necessary is it to appoint a conveyancing solicitor local to us?
  • I am in the process of removing a name from a joint mortgage and the MBS Lending Ltd need me to use a conveyancing solicitor to carry out the legalities. Can you recommend a reasonably priced Crabtree conveyancing solicitor to deal with the transfer of equity? They need to be on the MBS Lending Ltd conveyancing panel.
  • I am completing a MBS Lending Ltd transfer of equity form and have come to the questions concerning debts etc. I do some debts that I have been paying off since 2008, in fact they have long since disappeared from my credit score. Must I set these out?
  • I already have a mortgage with MBS Lending Ltd and am keeping my current mortgaging but seeking to have it in my sole name so my ex won't be on it any longer. How long can it take for the application to be processed?
  • Taking into account that we have been a number of years estranged I have decided to give up my share of our former home to my husband who is re-mortgaging with MBS Lending Ltd. Can a transfer of equity be done in one month?
  • My existing mortgage is with MBS Lending Ltd. Can I transfer equity to someone who is not yet eighteen years old?

Sample of information requested in a lawyer form concerning a MBS Lending Ltd Transfer of Equity

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” Questionnaire.

Please provide the details of anyone to be added to the title deeds?

Would you like us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

Who will be responsible for the costs of the Transfer of Equity?

Please list all persons who occupy the property, their respective ages and relationships to you.

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?

Information to consider in conjunction with 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 titles

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

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 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 valuation of the property at finalisation of the transfer of equity transaction.
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 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