Pepper Homeloans transfer of equity: q and a’s

• Having been a number of years separated I have made the decision to transfer my interest in our apartment to my husband who is refinancing with Pepper Homeloans. Could this transfer of equity be done in 28 days?
• Our financial adviser has recommended their conveyancer for the Transfer of Equity plus remortgage with Pepper Homeloans - Surely it’s better to just instruct them?
• Will I incur any fees for a Transfer of Equity where the existing home loan is with Pepper Homeloans?
• Me and my former wife and I are searching for a responsive conveyancing lawyer to help me sell in a transfer of equity and refinance with Pepper Homeloans. I want to avoid being ripped off but with so many conveyancing firms who do transfer of equity conveyancing to pick from...who's the best?
• I own a property in Dunnington , with a Pepper Homeloans mortgage with my former partner. Him and his new partner are going to acquire my share. We had consent from Pepper Homeloans to remove my name with hers. The transfer of equity needs to be done by a conveyancer for Pepper Homeloans (apparently). Can we do the Land Registry change?
• My partner and I jointly own a property in Timperley . Mortgage is with Pepper Homeloans. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be easy to so?
• I already have a mortgage with Pepper Homeloans and am keeping my existing mortgaging but seeking to have have the equity transferred to my sole name so my former partner will no longer be on the title. How long can it take for the paperwork to be processed?

Sample of questions in a lawyer questionnaire relating to Pepper Homeloans Transfer of Equity

Important warnings to consider in conjunction with the above Pepper Homeloans transfer of equity Advice :

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

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach 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 as a result of 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 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 valuation of the property at the conclusion of the transfer of equity transaction.

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 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 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.