Top seven questions relating to Pepper Homeloans transfer of equity
- My dad passed away half a year ago leaving a unencumbered house to me and my step brother equally. Having continues to reside at the premises, there was a clause in the will specifying that the housecould not be sold for 24 months after her passing so he could remain there for a while. He now says he would like to remain in the property 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 mortgage in the usual way to buy my half from me?
- I got divorced in 2011. For some reason I never got around to change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Pepper Homeloans is content to transfer the property and loan in my name (financial checks done). Does my ex need a conveyancer?
- I recently purchased a house without my partner's name on the title documents. My lawyer advised it is because she was not in the loan offer with Pepper Homeloans. I'm wondering is there any way that I can add her name on the documents at HMLR?
- I am selling my equity in house in Hendon to my co-owners fiance, they are sticking with Pepper Homeloans being the the existing lender. We are in heated discussion as to who should pay the fees for the transfer of equity. Is this normally split or is one party obliged to cover the charges for?
- What is the process for having a person removed off the deeds to a house if the home loan is with Pepper Homeloans
- Have recently separated from my partner of twenty years. I'm now living with my parents again and she wants to remain in the flat and buy me out. What percentage do I get. Is it half of the equity after paying off the mortgage with Pepper Homeloans? I assume proper valuations are necessary but I really need ensure that I'm getting I am not being walked over
- How much the typical solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - moving over to Pepper Homeloans - and have been quoted Four Hundred pounds including VAT by Pepper Homeloans's approved conveyancing solicitor, Have I been over quoted?
Information that may be required from your conveyancing solicitor may ask about your Pepper Homeloans Transfer of Equity
Please give the details of those who jointly own the premises with you?
Please list all persons who occupy the property, their respective ages and relationships to you.
Where 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 confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?
Who will be responsible for the costs of the Transfer of Equity?
Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Information to consider in conjunction with the above Pepper Homeloans transfer of equity Questions and Answers :
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
If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed you may be in violation of your covenants under 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 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Pepper Homeloans your property may be repossessed.
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 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.
