MBS Lending Ltd transfer of equity: q and a’s

• My partner and I jointly own a house in Crabtree . Mortgage is with MBS Lending Ltd. I wish to transfer full ownership to him with no payment of money but without using a conveyancing solicitor. Is this likely to be straightforward?
• I currently have a joint MBS Lending Ltd mortgage with my step-brother and am looking into the possibility of him taking on the whole mortgage and extracting myself from it, so as to enable me to buy a place with my partner. The outstanding mortgage is approx 250k, and the property value is in the region 450k. Is this a transfer of equity? Is stamp duty involved?
• How and when do I cover the costs of stamp duty due for the transfer of equity in my house in my sole name which is happening at the same time as a refinancing with MBS Lending Ltd?
• I own a apartment in Winchelsea , with a MBS Lending Ltd loan with my ex partner. Him and his new partner are going to acquire my share. We had the go ahead from MBS Lending Ltd to replace my name with hers. The transfer of equity needs to be completed by a conveyancer for MBS Lending Ltd (supposedly). Is it possible for us to deal with the Land Registry change?
• My father passed away seven months ago leaving a mortgage-free house to me and my half brother 50:50. Having continues to reside at the property, there was a clause in her will saying the premisescould not be sold for 24 months following her death so he could remain there for a prescribed period. He now wants to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to buy my half from me?
• Law week I split up with my partner of twenty years. I'm now living with my parents again and she wants to remain in the property and buy me out. What percentage am I entitled to. Is it half of the equity after discharging the MBS Lending Ltd home loan? I assume proper valuations are required but I would like ensure that I'm getting what I am entitled to
• Will I have to pay any fees for a Transfer of Equity where the current mortgage is with MBS Lending Ltd?

Sample of questions in a conveyancing solicitor questionnaire relating to MBS Lending Ltd Transfer of Equity

Information to consider in in addition to the above MBS Lending Ltd transfer of equity information :

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 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 restrictions 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.

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 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 finalisation of the transfer of equity conveyancing.

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.

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.