Transfer of Equity Conveyancing - Pepper Money Panel Requirements
The content on this web-page was fashioned to assist England and Wales conveyancing solicitors conducting Transfer of Equity conveyancing who are on the Pepper Money conveyancing panel. It is not intended as an alternative to reviewing Pepper Money Part-2 instructions
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Pepper Money require, the deed of covenant on their behalf. See below to see if Pepper Money have standard forms of transfer and deed of covenant
Does Pepper Money have a standard form of transfer of equity /deed of covenant?
No
When drafting or approving a transfer of equity, you should bear in mind that:
- although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage;
- the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check (see below for where to obtain this);
- there should be no statement that all interest has been paid to date.
If different from 1.11 of Pepper Money UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
Please contact Pepper Money, Servicing Department Harman House, 1 George Street, Uxbridge, Middlesex, UB8 1QQ
As a conveyancer on the Pepper Money panel you must ensure that every person who will be a borrower after the transfer covenants with Pepper Money to pay the money secured by the mortgage, except in the case of:
- an original party to the mortgage (unless the mortgage conditions are being varied); or
- a person who has previously covenanted to that effect.
Any such covenant will either be in the transfer or in a separate deed of covenant. In a transfer, the wording of the covenant should be as follows, or as close as circumstances permit: "The new borrower agrees to pay the lender all the money due under the mortgage and will keep to all the terms of the mortgage." If it is in the transfer, you must place a certified copy of the transfer with the deeds (unless Pepper Money tell you not to in their CML part 2 requirements, please see below).
Does Pepper Money need to be sent the transfer of equity?
Yes, please send to Pepper Money, Servicing Department Harman House, 1 George Street, Uxbridge, Middlesex, UB8 1QQ
If Pepper Money have agreed to release a borrower or a guarantor and their standard transfer form (if any) includes no appropriate clause, you must add a simple form of release. The release clause should be as follows, or as close as circumstances permit: "The lender releases ... from his/her/their obligations under the mortgage." You should check whether a guarantor who is to be released was a party to the mortgage or to a separate guarantee.
You must obtain the consent of every guarantor of whom you are aware to the release of a borrower or, as the case may be, any other guarantor.
You must only submit the transfer to Pepper Money for execution if it releases a party. All other parties must execute the transfer before it is sent to Pepper Money . See Pepper Money part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Pepper Money approved form of attestation clause - see below:
If different from 1.11, Pepper Money contact point for obtaining execution of transfer equity:
Please contact Pepper Money, Servicing Department Harman House, 1 George Street, Uxbridge, Middlesex, UB8 1QQ
What form of attestation clause does Pepper Money use?
"""Signed as a deed by..............................,as authorised signatory for and on behalf of UK Mortgage Lending Ltd (trading as Pepper Money) in the presence of a witness:
Authorised signatory......................
Witness .......................
Witness name (print).........................
Witness address......................"" "
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