MBS Lending Ltd transfer of equity: q and a’s
- I am completing a MBS Lending Ltd transfer of equity request and have arrived at the part regarding debts etc. I do some debts that I have been reducing for a number of years, in fact they have long since disappeared from my credit records. Am I obliged to set these out?
- Me and a friend got a joint mortgage with MBS Lending Ltd on a property in 2013. I am now thinking of buying a apartment on my own and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any problem with MBS Lending Ltd with him being on the hook for the total loan rather than only part of it?
- I jointly own a property in Miles Platting
, with a MBS Lending Ltd loan with my ex husband. Him and his new partner are going to buy me out. We had consent from MBS Lending Ltd to replace my name with hers. The transfer of equity has to be completed by a conveyancer for MBS Lending Ltd (apparently). Is it possible for us to deal with the Land Registry formalities?
- Can I apply to borrow more money from MBS Lending Ltd as part of a Transfer of Equity?
- I currently have a joint MBS Lending Ltd mortgage with my step-brother and am looking into the option of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy somewhere with my partner. The remaining mortgage is approx 250k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?
- I got divorced in 2010. I simply never got around to transfer ownership from both our names to my sole name. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. MBS Lending Ltd is happy to transfer the property and loan in my name (financial checks done). Does my ex need a lawyer?
- Online reading suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I need to be transferring equity and simultaneously remortgaging with MBS Lending Ltd
Sample of questions in a conveyancer form concerning a MBS Lending Ltd Transfer of Equity
Have you approached MBS Lending Ltd to obtain consent to the Transfer of Equity
Where you 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?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Can you provide the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in 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 market value of the property at finalisation 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 conveyancing solicitor 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.