Frequently asked questions relating to Pepper Money transfer of equity

• Am I best advised stop my mortgage payments with Pepper Money once a date for my remortgage and transfer of equity has been agreed?
• As things stand I have a joint Pepper Money mortgage with my cousin and am looking into the option of him taking on the outstanding mortgage and extracting myself from it, to enable me to purchase somewhere with my partner. The outstanding mortgage is in the region 300k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
• What if my application doesn't meet Pepper Money lending criteria for a transfer of equity?
• What do I need to do when it comes adding or removing names (transfer of equity) to or from my Pepper Money mortgage account?
• I am transferring my equity in apartment in Birmingham to my co-owners fiance, they are reapplying to Pepper Money. We are in heated discussion as to who should cover the costs of the transfer of equity. Should this be shared or is one party liable for the legal bill?
• My partner and I co-own a house in Blaenavon . Home loan is with Pepper Money. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be simple?
• My former husband are planning to get a conveyancer lined up for a refinance with Pepper Money. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over the country. How necessary is it to appoint a lawyer local to us?

Questions that your conveyancing solicitor could ask regarding your Pepper Money Transfer of Equity

Caveats to be read in supporting the above Pepper Money transfer of equity Info :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Pepper Money conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 conveyancing solicitor will check with Pepper Money 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 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 conclusion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Pepper Money 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 Money 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.

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.