Questions and answers: Pepper Money (UK) transfer of equity
- I acquired a house with my brother in 2010 Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the Pepper Money (UK) mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My friend and I got a joint mortgage with Pepper Money (UK) on a property in 2013. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on a price what happens next? Would there be any potential problem with Pepper Money (UK) with him being solely liable for the total mortgage as opposed to only half of it?
- I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
- Is it possible to apply to borrow more money from Pepper Money (UK) as part of a Transfer of Equity?
- I am completing a Pepper Money (UK) transfer of equity form and have arrived at the part that asks about defaults etc. There are some debts that I have been clearing over a long period, in fact they have long since disappeared from my credit records. Do I need to set these out?
- I am disposing of my equity in house in Birmingham to my co-owners husband, they are sticking with Pepper Money (UK) as the the existing mortgage company. We are debating as to who must pay the legal bill for the transfer of equity. Is this normally split or is one party liable for the charges for?
- My Pepper Money (UK) home loan we jointly entered into with ex, who is agreeable to be removed 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) write my boss to verify my salary?
Questions that your conveyancing solicitor may ask about your Pepper Money (UK) Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Can you provide the details of anyone who jointly owns the property with you?
Is it the case that one of the registered proprietors passed away? If so please provide us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Have you approached Pepper Money (UK) to obtain consent to the Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Caveats to be read in supplemental the above Pepper Money (UK) transfer of equity Info :
Tax and Legal
There are numerous potential 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
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 is dependent on the market value of the property at the conclusion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Pepper Money (UK).
Preparing the Transfer of Equity with a Pepper Money (UK) 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 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 conveyancer 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.