Common questions relating to MBS Lending Ltd transfer of equity
- I am completing a MBS Lending Ltd transfer of equity request and have come to the part that asks about defaults etc. I do some debts that I have been paying off for a number of years, I understand that they no longer remain my credit records. Do I need to reveal these?
- My mum passed away half a year ago leaving a mortgage-free house to me and my brother 50:50. He has always lived in the house, there was a provision in the will saying the housecould not be sold for three years following her death so he could remain there for a specified time frame. He now says he would like to remain in the house beyond the specified period. We have considered a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my share?
- Am I best advised stop my mortgage payments with MBS Lending Ltd as soon as a date for my remortgage and transfer of equity has been agreed?
- I am trying to find a conveyancing solicitor to deal with my transfer of equity. MBS Lending Ltd have been approached for a remortgage. I considered asking my mortgage broker. I am lead to believe he will likely receive a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has a working relationship with them. Is my logic correct?
- MBS Lending Ltd yesterday agreed I can take over the mortgage on the house. I had applied for a transfer of equity but is this a transfer of ownership of the title deeds as well?
- My MBS Lending Ltd home loan is in joint names with ex, who is agreeable to be removed and let me have the property. MBS Lending Ltd will permit the transfer of equity to my individual name. Do MBS Lending Ltd get in touch with my employer to confirm my salary?
- Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor where I am transferring equity and at the same time switching mortgage with MBS Lending Ltd
Questions that your conveyancing solicitor is likely to ask regarding your MBS Lending Ltd Transfer of Equity
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 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 property with you?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please provide a copy of your National Insurance Number?
General Advice to read in supplemental 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 have a license to do so from the landlord. If such conditions are not strictly observed you may be in violation of your covenants under 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 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 conveyancing.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.