Recently asked questions relating to Pepper Money (UK) transfer of equity
- I already have a mortgage with Pepper Money (UK) and am retaining my current mortgaging but seeking to have it in my name alone so my ex will come off the title. How long does the whole transfer of equity process take?
- What is the process for adding or removing names (transfer of equity) to or from my Pepper Money (UK) mortgage account?
- I am in the process of refinancing my house in Miles Platting
does my lawyer have to be on the Pepper Money (UK) Conveyancing panel. The conveyancing also involves a transfer of equity.
- I got divorced in 2011. Foolishly I never got around to change the ownership from both our names to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Pepper Money (UK) is happy to transfer the property and loan in my name (affordability checks done). Does she need a lawyer?
- After 2 a couple of years separated I have made the decision to relinquish up my interest in our flat to my husband who is refinancing with Pepper Money (UK). Can a transfer of equity be done in one month?
- When it comes to transfer of equity conveyancing involving a remortgage with Pepper Money (UK) should I be paying value added tax on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- As things stand I have a joint Pepper Money (UK) mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my fiance. The outstanding mortgage is approx 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax involved?
Questions that your conveyancer could ask in relation to your Pepper Money (UK) Transfer of Equity
Please give the details of anyone to be added to the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Have you approached Pepper Money (UK) to seek consent to the Transfer of Equity
Caveats to be read in further to the above Pepper Money (UK) transfer of equity Advice :
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 have a license to do so from the landlord. If such terms are not adhered to you may be in breach of 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 lawyer 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 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 conveyancing solicitor 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 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.