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Pepper Money (UK)

Examples of recent questions relating to Pepper Money (UK) transfer of equity

  • My friend and I got a joint mortgage with Pepper Money (UK) on a flat about a year ago. I am now thinking of buying a property on my own and my friend would like to buy me out. Assuming we can agree a figure what are the next steps? Is there likely to be any concerns with Pepper Money (UK) with him being responsible for the total mortgage rather than only half of it?
  • I recently bought a house without my wife's name on the title documents. My lawyer advised it is due to the fact that she is not in the loan offer with Pepper Money (UK). Is it possible for me to add her name on the deeds?
  • How and when do I incur stamp duty payable for the transfer of equity in my property in my name alone which is happening simultaneously with a switching mortgage with Pepper Money (UK)?
  • What do I need to do when it comes adding or removing names (transfer of equity) to or from my Pepper Money (UK) mortgage account?
  • I am thinking of mortgaging my property in Blaenavon does my lawyer need to be on the Pepper Money (UK) Conveyancing panel. The conveyancing also involves a transfer of equity.
  • My Pepper Money (UK) mortgage is in joint names with ex, who has agreed to come off the mortgage and put the house in my name alone. Pepper Money (UK) have consented to the transfer of equity to my individual name. Do Pepper Money (UK) contact my boss to confirm my salary?
  • I currently have a joint Pepper Money (UK) mortgage with my cousin and am looking into the feasibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The outstanding mortgage is about 300k, and the property value is approx 450k. Is this a transfer of equity? Is stamp duty due?

Information that may be required from your conveyancing solicitor could ask in relation to your Pepper Money (UK) Transfer of Equity

Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Please inform us where you are providing any payment for the Transfer of Equity and to whom and disclose the amount?

Has consent been obtained from Pepper Money (UK) to the proposed transfer of equity?

Please give the details of anyone to be extracted from the property title?

General Advice to read in further to the above Pepper Money (UK) transfer of equity Advice :

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 titles

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of 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 conveyancing solicitor 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 varies based on the market value of the property at the conclusion of the transfer of equity transaction.
If you do not keep up the payments on your mortgage with Pepper Money (UK) your property may be repossessed.

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.

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.


Frequently asked questions relating to Pepper Money (UK) transfer of equity