Pepper Money (UK) transfer of equity: q and a’s
- I jointly own a apartment in Miles Platting
, with a Pepper Money (UK) mortgage with my former husband. Him 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 completed by a conveyancing solicitor for Pepper Money (UK) (supposedly). Can we do the Land Registry change?
- My divorce has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Pepper Money (UK) mortgage. I have contacted Pepper Money (UK) for the transfer of equity application. What are my next steps?
- I am disposing of my equity in apartment in Birmingham to the other co-owners fiance, they are sticking with Pepper Money (UK) as the the existing lender. We are debating as to who must cover the legal bill for the transfer of equity. Should this be split or is one of us obliged to cover the costs of?
- Is it sensible to stop my mortgage payments with Pepper Money (UK) as soon as a date for my remortgage and transfer of equity has been agreed?
- I am planning on removing a name from a joint mortgage and the Pepper Money (UK) need me to use a conveyancing solicitor to carry out the paperwork. Can you recommend a reasonably priced Wakefield
conveyancer to deal with the transfer of equity? They need to be on the Pepper Money (UK) conveyancing panel.
- I am looking for a lawyer to undertake my transfer of equity. Pepper Money (UK) have been approached for a remortgage. I thought of asking my mortgage broker. I am lead to believe he will likely get a kickback for suggesting a firm, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
- As things stand I have a joint Pepper Money (UK) mortgage with my brother and am investigating the possibility of him assuming responsibility for the whole mortgage and subtracting myself from it, to enable me to buy a place with my partner. The remaining mortgage is approx 200k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty due?
Information that may be required from your conveyancing solicitor could ask regarding your Pepper Money (UK) Transfer of Equity
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of all the relevant documents e.g. the will, death certificate etc..
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive the same
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Would you like 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)?
Information to consider in in addition 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 premises
Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not strictly observed you may be in breach 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 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 varies based on the valuation of the property at finalisation 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 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 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.
