Recently asked questions relating to MBS Lending Ltd transfer of equity

• MBS Lending Ltd yesterday agreed I can take over the home loan on the flat. I have applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds as well?
• My MBS Lending Ltd home loan is in joint names with ex, who has agreed to be removed and put the house in my name alone. MBS Lending Ltd will permit the transfer of equity to my individual name. Do MBS Lending Ltd contact my company to confirm my salary?
• My partner and I jointly own a flat in Miles Platting . Mortgage is with MBS Lending Ltd. I want to transfer full ownership to him with no exchange of money but without using a lawyer. Do you think this should be simple?
• I am hoping to remortgage my flat in Rye changing from Accord to MBS Lending Ltd. The home is jointly owned but propose for it to be in my name only as and when I switch. My former partner is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
• Is it sensible to cancel the direct debit for my mortgage with MBS Lending Ltd as soon as a date for my remortgage and transfer of equity has been set?
• Last year purchased a house without my wife's name on the title. My lawyer said it is because she was not in the loan offer with MBS Lending Ltd. Is it possible for me to add her name on the title?
• I am am in need of a lawyer to undertake my transfer of equity. MBS Lending Ltd have been approached for a remortgage. I thought of asking my financial adviser. I understand he may receive a kickback for recommending a firm, but also of benefit will be that he knows the lawyer, has a working relationship with them. Any flaws you see in this way of thinking?

Questions that your lawyer is likely to ask in relation to your MBS Lending Ltd Transfer of Equity

General Advice to read in conjunction with the above MBS Lending Ltd transfer of equity Info :

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

If your property is leasehold, 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 terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 finalisation of the transfer of equity transaction.

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.

Content 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.