MBS Lending Ltd transfer of equity example support desk enquires
- I plan to remortgage my home in Witham
switching from Halifax to MBS Lending Ltd. The maisonette is currently in joint names but wish for it to be in my name only when I switch. My husband is OK with this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
- I bought a house with my cousin five.seven years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is removed the MBS Lending Ltd mortgage. There is a 40k difference between the value the mortgage company say and what the property would sell for currently. Can you offer any advice?
- I jointly own a house in Witham
, with a MBS Lending Ltd mortgage with my ex partner. Him and his new partner are going to buy me out. We had approval from MBS Lending Ltd to remove my name with hers. The transfer of equity needs to be completed by a lawyer for MBS Lending Ltd (apparently). Is it possible for us to do the Land Registry formalities?
- As things stand I have a joint MBS Lending Ltd mortgage with my cousin and am looking into the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase somewhere with my fiance. The outstanding mortgage is about 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
- What if my application doesn't meet MBS Lending Ltd lending criteria for a transfer of equity?
- I am transferring my equity in property in Warwick to my co-owners fiance, they are reapplying to MBS Lending Ltd. We are in heated discussion as to who should cover the legal bill for the transfer of equity. Should this be shared or is one of us obliged to cover the legal bill?
- My decree absolute has gone through as is the consent order. Now I need to sort out 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?
Sample of questions in a conveyancing solicitor questionnaire concerning a MBS Lending Ltd Transfer of Equity
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)?
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?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please provide the details of anyone to be removed from the property title?
If you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Important warnings to consider in in addition 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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.
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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
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 lawyer 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.