Frequently asked questions relating to Pepper Money (UK) transfer of equity

• Me and a friend got a joint mortgage with Pepper Money (UK) on a house a couple of years ago. I am now looking to get a house by myself and my friend would like to buy me out. Assuming we can agree an amount what happens next? Would there be any potential problem with Pepper Money (UK) with him being solely liable for the total loan as opposed to only half of it?
• I am disposing of my share of a flat in Warwick to the other co-owners fiance, they are sticking with Pepper Money (UK) being the the existing mortgage company. We are in heated discussion as to who should pay the costs of the transfer of equity. Should this be shared or is one of us liable for the costs of?
• In 2009 I purchased a apartment without my fiance’s name on the ownership paperwork. My conveyancer said it is because she was not in the mortgage with Pepper Money (UK). Is it possible for me to put her name on the title?
• I am answering a Pepper Money (UK) transfer of equity request and have come to the questions that asks about defaults etc. I do some debts that I have been discharging over a long period, in fact they have long since disappeared from my credit score. Am I obliged to reveal these?
• What is the process for having a person removed from the title documents to a property if the mortgage is with Pepper Money (UK)
• When it comes to transfer of equity conveyancing involving refinance with Pepper Money (UK) should I be paying value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• Is it sensible to cancel my mortgage payments with Pepper Money (UK) once a date for my remortgage and transfer of equity has been set?

Information that may be required from your conveyancing solicitor is likely to ask in relation to your Pepper Money (UK) Transfer of Equity

Information to consider in in addition to the above Pepper Money (UK) 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 Money (UK) conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, 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 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 Money (UK) 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 Money (UK) 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 valuation of the property at the time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Pepper Money (UK) Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Pepper Money (UK) 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.

Content on 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.