Sample questions relating to Pepper Homeloans transfer of equity
- What legal advice do I need when doing a transfer of equity where the home loan is to remain with Pepper Homeloans?
- Pepper Homeloans have today agreed I can take over the home loan on my home. I had applied for a transfer of equity but is this a transfer of ownership at HMLR on top?
- I currently have a joint Pepper Homeloans mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and subtracting myself from it, to enable me to purchase a property with my fiance. The remaining mortgage is in the region 300k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty involved?
- My partner and I co-own a property in Crabtree
. Mortgage is with Pepper Homeloans. I want to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
- I plan to refinance my maisonette in Rye
moving from Barclays to Pepper Homeloans. The home is currently in joint names but propose for it to be in my sole name as and when I transfer. My wife has agreed to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
- I am trying to find a conveyancing solicitor to handle my transfer of equity. Pepper Homeloans have been approached for a remortgage. I thought of asking my mortgage broker. I understand he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Is my logic flawed?
- My fiance and myself have equal shares in a buy to let. I am a top rate tax payer. Preferably I would like to complete a transfer of equity to her sole name to mitigate tax on rental income. If Pepper Homeloans are content with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
Examples of questions in a conveyancer questionnaire relating to Pepper Homeloans Transfer of Equity
Please provide a copy of your National Insurance Number?
Who will be responsible for the costs of the Transfer of Equity?
Please give the name(s) and addresse(s) of anyone who jointly owns the premises with you?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
If you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.
Please give the name(s) and addresse(s) of anyone to be removed from the title deeds?
Information to consider in further to the above Pepper Homeloans transfer of equity information :
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 Homeloans conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold titles
Should the tenure of your property be 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 complied with you may be in breach 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 Homeloans 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 Homeloans 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 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 Homeloans.
Preparing the Transfer of Equity with a Pepper Homeloans 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 Homeloans 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 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.