Pepper Money transfer of equity: q and a’s

• My wife and I equally own a BTL. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on rental income. Assuming Pepper Money are content with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
• Me and a friend got a joint mortgage with Pepper Money on a house about a year ago. I am now looking to get a apartment by myself and my friend would like to buy me out. Once we have agreed an amount where do we go? Would there be any potential issue with Pepper Money with him being responsible for the total loan as opposed to only half of it?
• How do I go about adding or subtracting names (transfer of equity) to or from my Pepper Money mortgage account?
• I am in the process of refinancing my home in Winchelsea does my lawyer need to be on the Pepper Money Solicitor panel. The conveyancing also involves a transfer of equity.
• My partner and I co-own a house in Crabtree . Home loan is with Pepper Money. I want to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be simple?
• The mortgage broker has recommended their conveyancing solicitor for my Transfer of Equity plus remortgage with Pepper Money - Surely it’s better to just use them?
• I am completing a Pepper Money transfer of equity request and have come to the questions regarding defaults etc. I do some debts that I have been discharging for a number of years, I understand that they no longer remain my credit records. Do I need to set these out?

Questions that your conveyancer may ask regarding your Pepper Money Transfer of Equity

General Advice to read in supplemental 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

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in breach of 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 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 finalisation 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 lawyer 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 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 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.