Recently asked questions relating to Pepper Homeloans transfer of equity

• My existing mortgage is with Pepper Homeloans. Can I transfer equity to someone less than 18 years old?
• I purchased a house with a friend five.seven years ago Since buying the property, we have both got married. We are now looking to do a transfer of equity so my name is removed the Pepper Homeloans mortgage. There is a 30k difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Pepper Homeloans?
• I am transferring my equity in property in Birmingham to the other co-owners husband, they are sticking with Pepper Homeloans being the the existing lender. We are haggling as to who should pay the costs of the transfer of equity. Is this normally split or is one of us liable for the charges for?
• Me and my partner co-own a house in Ampthill . Mortgage is with Pepper Homeloans. I wish to transfer full ownership to him with no passing of money but without using a conveyancer. Is this likely to be straightforward?
• My ex are looking to get a lawyer lined up for a refinance with Pepper Homeloans. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over England and Wales. Do we need to have a lawyer local to us?
• Is it sensible to stop my mortgage payments with Pepper Homeloans once a date for my remortgage and transfer of equity has been agreed?

Examples of information requested in a conveyancing solicitor form relating to Pepper Homeloans Transfer of Equity

Important warnings 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 properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

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 lawyer 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 valuation of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Pepper Homeloans 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 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 conveyancer 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.