Top seven questions relating to MBS Lending Ltd transfer of equity
- My partner and I jointly own a flat in Heathfield
. Home loan is with MBS Lending Ltd. I wish to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- What if my application doesn't meet MBS Lending Ltd lending criteria for a transfer of equity?
- I co-own a flat in Ampthill , with a MBS Lending Ltd mortgage with my former husband. He and his new partner are going to buy me out. We had approval from MBS Lending Ltd to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for MBS Lending Ltd (apparently). Is it possible for us to deal with the Land Registry change?
- Have recently split up with my wife of 18 years. I'm now living with my parents again and she wishes to stay 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 to be confident that I'm getting I am not being taken advantage of
- My former wife are looking to get a conveyancer lined up for a remortgage with MBS Lending Ltd. Transfer of Equity conveyancing is also neededI have used the different rating based tools and the results are from all over UK. Do we need to have a conveyancer local to us?
- I am transferring my share of a flat in Woodside to the other co-owners husband, they are reapplying to MBS Lending Ltd. We are haggling as to who must pay the fees for the transfer of equity. Is this usually shared or is one of us liable for the costs of?
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with MBS Lending Ltd?
Information that may be required from your lawyer may ask regarding your MBS Lending Ltd Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Can you provide the details of those who jointly own the premises with you?
Please provide a copy of your National Insurance Number?
Please give the name(s) and addresse(s) of anyone to be removed from the property title?
Please list all persons who occupy the property, their respective ages and relationships to you.
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Information to consider in conjunction with 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 properties
If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation 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 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 conveyancer 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.
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 conveyancer 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 does not constitute 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.