Pepper Money transfer of equity: q and a’s
- My partner and I co-own a flat in Crabtree
. Mortgage is with Pepper Money. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Is this likely to be easy to so?
- When it comes to transfer of equity conveyancing involving refinance with Pepper Money should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- Pepper Money have just agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership of the house on top?
- I am in the process of removing a name from a joint mortgage and the Pepper Money require me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Romsey
conveyancer to deal with the transfer of equity? They need to be on the Pepper Money conveyancing panel.
- I jointly own a flat in Sedgefield
, with a Pepper Money mortgage with my ex partner. He and his new partner are going to buy me out. We had consent from Pepper Money to replace my name with hers. The transfer of equity has to be done by a conveyancer for Pepper Money (apparently). In order to save fees can I do the Land Registry formalities?
- As things stand I have a joint Pepper Money mortgage with my brother and am investigating the option of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my soon-to-be-wife. The outstanding mortgage is approx 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty payable?
- Last year purchased a house without my partner's name on the deeds. My conveyancing solicitor advised it is because she is not in the loan offer with Pepper Money. Is it possible for me to put her name on the title?
Questions that your conveyancing solicitor may ask in relation to your Pepper Money Transfer of Equity
Can you provide the details of anyone who jointly owns the premises with you?
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
Please give the details of anyone to be added to the property title?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
General Advice to read in in addition to the above Pepper Money transfer of equity information :
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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation 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 pursuant to 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 conveyancer will check with Pepper Money 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 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.
Preparing the Transfer of Equity with a Pepper Money 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 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.