Common questions relating to MBS Lending Ltd transfer of equity
- My MBS Lending Ltd mortgage we jointly entered into with ex, who has agreed to come off the mortgage and put the house in my name alone. MBS Lending Ltd have consented to the transfer of equity to my individual name. Will MBS Lending Ltd call my company to confirm my salary?
- My father passed away early last year leaving a unencumbered property to me and my half brother in equal shared. He has always lived in the house, there was a provision in the will specifying that the propertycould not be sold for 24 months after her death so he could remain there for a while. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a mortgage in the traditional way to purchase my half from me?
- Last year purchased a house without my partner's name on the deeds. My lawyer advised it is due to the fact that she is not in the mortgage with MBS Lending Ltd. Is it possible for me to add her name on the deeds?
- Me and a friend got a joint mortgage with MBS Lending Ltd on a flat a couple of years ago. I am now looking to get a house on my own and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Would there be any potential issue with MBS Lending Ltd with him being responsible for the total mortgage as opposed to only half of it?
- I am selling my equity in flat in Woodside to the other co-owners husband, they are sticking with MBS Lending Ltd as the the existing lender. We are in heated discussion as to who should cover the charges for the transfer of equity. Should this be split or is one of us liable for the costs of?
- At what point do I pay stamp duty due for the transfer of equity in my home in my name alone which is happening at the same time as a remortgage with MBS Lending Ltd?
- Am I best advised stop my mortgage payments with MBS Lending Ltd once a date for my remortgage and transfer of equity has been agreed?
Sample of information requested in a conveyancer form relating to MBS Lending Ltd Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please provide a copy of your National Insurance Number?
Has one of the registered proprietors passed away? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you provide the name(s) and addresse(s) of those who jointly own the premises with you?
Important warnings to consider in in addition to 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, provisions in the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger 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 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 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 is dependent 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 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 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.