Frequently asked questions relating to Pepper Money transfer of equity
- I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
- My partner and I jointly own a flat in Blaenavon
. Mortgage is with Pepper Money. I want to transfer full ownership to him with no exchange of money but without using a conveyancer. Is this likely to be straightforward?
- My partner and I jointly own a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on rental income. If Pepper Money are fine with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
- I own a apartment in Timperley
, with a Pepper Money mortgage with my ex partner. Him and his fiance are going to buy me out. We had approval from Pepper Money to replace my name with hers. The transfer of equity has to be done by a conveyancer for Pepper Money (supposedly). Can we deal with the Land Registry change?
- Have recently separated from my ex of thirty years. I'm now back with my parents again and she wants to remain in the apartment and buy me out. What portion do I get. Is it 50% of the equity after paying off the mortgage with Pepper Money? I assume proper valuations are required but I would like ensure that I'm getting I am not being taken advantage of
- Online research suggests that solicitors are more expensive than conveyancers when it comes to transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor if I am transferring equity and simultaneously remortgaging with Pepper Money
- I am in the market for an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Pepper Money. I want to avoid being ripped off but with lots of conveyancing solicitors who do transfer of equity conveyancing out there...who's the best?
Examples of questions in a conveyancing solicitor form relating to Pepper Money Transfer of Equity
Please provide a copy of your National Insurance Number?
Where you are adding someone on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Can you provide the details of anyone who jointly owns the premises with you?
Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please let us know of you wish us to draw up a Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?
Important warnings to consider in further to the above Pepper Money transfer of equity Questions and Answers :
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 have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could trigger 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 conveyancing solicitor 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 is dependent on the market value 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.
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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.