Questions and answers: Pepper Money transfer of equity
- I bought a flat with a friend in 2008 Since purchasing the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the Pepper Money mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- I already have a mortgage with Pepper Money and am maintaining my existing mortgaging but wish to have it in my name alone so my former husband will come off the deeds. How long can it take for the application to be processed?
- Been reviewing consumer blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. So is it better if I use a conveyancer or a solicitor if I need to be transferring equity and simultaneously switching mortgage with Pepper Money
- I am completing a Pepper Money transfer of equity request and have arrived at the part that asks about debts etc. I do some debts that I have been reducing for a number of years, I understand that they no longer remain my credit records. Must I set these out?
- Is it possible to apply to request more money from Pepper Money as part of a Transfer of Equity?
- I own a apartment in Miles Platting
, with a Pepper Money loan with my ex husband. He and his fiance are going to buy me out. We had the go ahead from Pepper Money to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Pepper Money (apparently). In order to save fees can I deal with the Land Registry change?
- My ex-fiance and I are are seeking to find a responsive conveyancing solicitor to assist in a transfer of equity and refinance with Pepper Money. I I am fearful of appointing the wrong one but with lots of conveyancing organisations who do transfer of equity conveyancing to pick from...who's the best?
Examples of questions in a lawyer form concerning a Pepper Money Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?
Please give the details of anyone who jointly owns the premises with you?
Is the transfer of equity subject to a court order? If yes please supply a copy
Please provide the details of anyone to be extracted from the title deeds?
Who will be responsible for the costs of the Transfer of Equity?
Caveats to be read in in addition to the above Pepper Money transfer of equity Questions and Answers :
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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of 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.
If the transfer of equity is made pursuant to 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 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.
If you do not keep up the payments on your mortgage with Pepper Money your property may be repossessed.
Preparing the Transfer of Equity with a Pepper Money 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 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 contained within this webpage is for general information and only applies to England and Wales. It should not be regarded as 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.