Pepper Homeloans transfer of equity: q and a’s

• Me and my former fiance and I are are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and refinance with Pepper Homeloans. I am aware of the risk of getting ripped off and there's many conveyancing practices who do transfer of equity conveyancing to pick from...who's the best?
• Given that we have been a number of years estranged I have decided to give up my interest in our former home to my husband who is re-mortgaging with Pepper Homeloans. Could this transfer of equity be completed in less than 28 days?
• Am I best advised stop the direct debit for my mortgage with Pepper Homeloans once a date for my remortgage and transfer of equity has been agreed?
• My friend and I got a joint mortgage with Pepper Homeloans on a apartment about a year ago. I am now thinking of buying a house on my own and my friend would like to buy me out. Assuming we can agree an amount where do we go? Is there likely to be any concerns with Pepper Homeloans with him being solely liable for the total mortgage rather than only part of it?
• At what stage do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my home in my name alone which is taking place at the same time as a remortgage with Pepper Homeloans?
• What is the process for having a person removed off the title documents to a property if the mortgage is with Pepper Homeloans
• The financial adviser has recommended their lawyer for my Transfer of Equity plus remortgage with Pepper Homeloans - Is it not simpler advisable to just use them?

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

Important warnings to consider in further to 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 have a license to do so from the freeholder. 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.

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 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 finalisation 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.

Content 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.