Recently asked questions relating to Pepper Money transfer of equity
- I co-own a house in Friern Barnet
, with a Pepper Money loan with my ex husband. Him and his fiance are going to acquire my share. We had consent from Pepper Money to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Pepper Money (apparently). Is it possible for us to do the Land Registry change?
- I am transferring my share of a flat in Hendon to the other co-owners fiance, they are sticking with Pepper Money as the the existing mortgage company. We are debating as to who must cover the fees for the transfer of equity. Should this be split or is one party obliged to cover the legal bill?
- Is it possible to apply to request a further advance from Pepper Money as part of a Transfer of Equity?
- I am in the process of removing a name from a joint mortgage and the Pepper Money need me to use a conveyancing solicitor to carry out the conveyancing. Can you recommend a reasonably priced Romsey
lawyer to deal with the transfer of equity? They need to be on the Pepper Money conveyancing panel.
- Do I need legal advice when doing a transfer of equity where the home loan is to remain with Pepper Money?
- My partner and myself equally own a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name to reduce our tax on rental income. If Pepper Money are fine with this the legal fees are not high. However what happens when we sell? Would my GGT relief be lost.
- My father passed away last March leaving a loan-free property to me and my half brother equally. Having continues to reside at the house, there was a condition in the will saying the propertycould not be sold for 24 months after her passing so he could remain there for a while. He now says he would like to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the usual way to acquire my half from me?
Questions that your lawyer is likely to ask in relation to your Pepper Money Transfer of Equity
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 confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
Please provide a copy of your National Insurance Number?
Is the transfer of equity subject to a court order? If yes please supply a copy
Is it the case that one of the registered proprietors passed away? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Important warnings to consider in conjunction with the above Pepper Money 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 conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 the time of completion of the transfer of equity transaction.
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 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 lawyer 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.