Recently asked questions relating to Pepper Homeloans transfer of equity

• My ex are planning to get a conveyancing solicitor in place for a remortgage with Pepper Homeloans. Transfer of Equity conveyancing is also requiredI have used the different comparison based tools and the results are from all over England and Wales. How necessary is it to appoint a lawyer local to us?
• Is it possible to transfer the equity held in my property with my Pepper Homeloans home loan?
• I am completing a Pepper Homeloans transfer of equity application and have come to the part concerning debts etc. There are some debts that I have been reducing over a long period, I understand that they have long since disappeared from my credit score. Do I need to disclose these?
• My wife and I jointly own a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name in order reduce our tax on rental income. If Pepper Homeloans are fine with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
• I plan to remortgage my home in Littleborough changing from Skipton to Pepper Homeloans. The maisonette is jointly owned but I would like it to be in my sole name once I transfer. My wife is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor fees.
• Two years ago I bought a flat without my wife's name on the title documents. My conveyancing solicitor claimed it is due to the fact that she was not in the mortgage with Pepper Homeloans. I'm wondering is there any way that I can add her name on the documents at HMLR?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Pepper Homeloans?

Questions that your conveyancing solicitor may ask regarding your Pepper Homeloans Transfer of Equity

General Advice to read 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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such terms are not adhered to 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 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 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 market value of the property at the conclusion 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 conveyancing solicitor 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 lawyer 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.