Frequently asked questions relating to Pepper Money (UK) transfer of equity
- I already have a home loan with Pepper Money (UK) and am retaining my existing mortgaging but applying to have have the equity transferred to my name only so my former wife won't be on it any longer. How long does the whole transfer of equity process take?
- I am completing a Pepper Money (UK) transfer of equity request and have come to the part regarding debts etc. I do some debts that I have been clearing over a long period, I understand that they no longer remain my credit rating. Must I set these out?
- I am selling my equity in property in Warwick to the other co-owners fiance, they are sticking with Pepper Money (UK) being the the existing lender. We are debating as to who should cover the charges for the transfer of equity. Is this normally shared or is one of us obliged to cover the charges for?
- I jointly own a flat in Ampthill , with a Pepper Money (UK) mortgage with my former partner. He and his fiance are going to acquire my share. We had the go ahead from Pepper Money (UK) to replace my name with hers. The transfer of equity has to be done by a conveyancer for Pepper Money (UK) (supposedly). Can we deal with the Land Registry change?
- Is it possible to transfer the equity held in my property with my Pepper Money (UK) mortgage?
- I am in the process of removing a name from a joint mortgage and the Pepper Money (UK) require me to use a lawyer to carry out the paperwork. Can you recommend a reasonably priced Crabtree
lawyer to deal with the transfer of equity? They need to be on the Pepper Money (UK) conveyancing panel.
- What are the average legal charges are for a transfer of equity? I'm in the process of remortgaging - new loan with Pepper Money (UK) - and have been quoted Four Hundred pounds including VAT by Pepper Money (UK)'s approved conveyancer, Have I been over quoted?
Sample of questions in a conveyancing solicitor questionnaire relating to Pepper Money (UK) Transfer of Equity
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Can you give the details of anyone who jointly owns the premises with you?
Is it the case that one of the registered proprietors died? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Would you like us to draw up a Declaration of Trust. If so are you willing to pay for the further fee (beyond the Transfer of Equity fee)?
Has consent been obtained from Pepper Money (UK) to the proposed transfer of equity?
Please provide a copy of your National Insurance Number?
Caveats to be read in in addition to the above Pepper Money (UK) transfer of equity information :
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
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in 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 cases, 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 valuation of the property at the conclusion of the transfer of equity conveyancing.
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.
Information contained within 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.