Questions and answers: Pepper Money (UK) transfer of equity

• I am transferring my share of a flat in Hendon to the other co-owners fiance, they are sticking with Pepper Money (UK) as the the existing mortgage company. We are debating as to who should pay the costs of the transfer of equity. Is this usually shared or is one of us liable for the charges for?
• Is it possible to transfer the equity held in my property with my Pepper Money (UK) home loan?
• I am answering a Pepper Money (UK) transfer of equity application and have come to the part regarding defaults etc. I do some debts that I have been paying off for a number of years, I understand that they have long since disappeared from my credit score. Must I disclose these?
• Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Pepper Money (UK)?
• Having been 3 years estranged I have decided to give up my interest in the apartment to my husband who is refinancing with Pepper Money (UK). Can a transfer of equity be done in less than 28 days?
• What is the process for adding or subtracting names (transfer of equity) to or from my Pepper Money (UK) mortgage account?
• I am considering refinancing my apartment in Ampthill does my lawyer have to be on the Pepper Money (UK) Conveyancing panel. The conveyancing also involves a transfer of equity.

Sample of questions in a conveyancing solicitor form concerning a Pepper Money (UK) Transfer of Equity

Caveats to be read in in addition to the above Pepper Money (UK) 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 Pepper Money (UK) conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, provisions in the lease may require 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 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 Pepper Money (UK) 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 Pepper Money (UK) 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 conveyancing.

Preparing the Transfer of Equity with a Pepper Money (UK) 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 Pepper Money (UK) 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 lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information contained within 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.