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MBS Lending Ltd

Sample questions relating to MBS Lending Ltd transfer of equity

  • Am I best advised stop the direct debit for my mortgage with MBS Lending Ltd once a date for my remortgage and transfer of equity has been agreed?
  • My former husband are planning to get a lawyer in place for a new mortgage with MBS Lending Ltd. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over UK. Is it important to instruct a conveyancer local to us?
  • Can I apply to borrow more money from MBS Lending Ltd as part of a Transfer of Equity?
  • Have recently split up with my wife of twenty years. I'm now living with my mum and dad and she wants to stay in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after discharging the mortgage with MBS Lending Ltd? I assume proper valuations are required but I really need ensure that I'm getting I am not being taken advantage of
  • My fiance and myself jointly own a buy to let. I am a higher rate tax payer. Ideally I would like to complete a transfer of equity to her sole name to reduce our tax on the letting income. If MBS Lending Ltd are content with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the deeds am I giving up my CGT relief.
  • Is stamp duty payable when it comes to an transfer of equity with a mortgage with MBS Lending Ltd?
  • As things stand I have a joint MBS Lending Ltd mortgage with my brother and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The remaining mortgage is in the region 250k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax involved?

Questions that your lawyer may ask in relation to your MBS Lending Ltd Transfer of Equity

Please give the details of anyone to be removed from the title deeds?

Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?

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

If you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Is there to be any payment between the parties for the Transfer of Equity? If so, please state the amount and who is to receive what amounts

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?

Important warnings to consider in supporting the above MBS Lending Ltd transfer of equity Advice :

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

Should the tenure of your property be 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 terms are not adhered to 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 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 valuation of the property at the conclusion 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 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.

Content 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.


Frequently asked questions relating to MBS Lending Ltd transfer of equity