Questions and answers: Pepper Money transfer of equity

• I am remortgaging my apartment in Blaenavon does my lawyer have to be on the Pepper Money Solicitor panel. The conveyancing also involves a transfer of equity.
• My mother died half a year ago leaving a mortgage-free semi to me and my half brother 50:50. Having continues to reside at the property, there was a condition in the will specifying that the housecould not be sold for 24 months following her death so he could continue to live there for a while. He now wants to remain in the premises beyond the prescribed period. We have considered a transfer of equity. Would I be right in thinking that we'd get a valuation then he'd get a home loan in the conventional way to acquire my equity?
• I acquired a house with my brother in 2009 Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Pepper Money mortgage. There is a 40k difference between the value the lender hold and what the property would sell for currently. Can you offer any advice?
• What is the process for having a person removed from the title documents to a property if the home loan is with Pepper Money
• My Pepper Money home loan is in joint names with ex, who has agreed to come off the deeds and put the house in my name alone. Pepper Money will permit the transfer of equity to me solely. Will Pepper Money contact my employer to confirm my salary?
• I plan to remortgage my maisonette in Sedgefield changing from Leeds Building Society to Pepper Money. The home is currently in joint names but intend for it to be in my name only once I switch. My former partner has verbally consented to this and is willing to transfer equity but neither of us want to incur conveyancing solicitor fees.
• I am transferring my share of a house in Hendon to my co-owners husband, they are reapplying to Pepper Money. We are in heated discussion as to who must pay the costs of the transfer of equity. Should this be split or is one of us obliged to cover the legal bill?

Examples of information requested in a lawyer questionnaire relating to Pepper Money Transfer of Equity

General Advice to read in further to the above Pepper Money transfer of equity Info :

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 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 landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 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 lawyer 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.

Preparing the Transfer of Equity with a Pepper Money 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 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.