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Recently asked questions relating to Pepper Money transfer of equity

  • I got divorced two years ago. For some reason I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Pepper Money is happy to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
  • Pepper Money yesterday agreed I can take over the home loan on my home. I had applied for a transfer of equity but presumably there is a transfer of ownership of the title deeds in addition?
  • Have recently split up with my partner of 18 years. I'm now living with my mum and dad and she wants to stay in the apartment and pay me off. What percentage do I get. Is it half of the equity after paying off the mortgage with Pepper Money? I assume proper valuations are required but I would like to be confident that I'm getting I am not being walked over
  • My wife and I jointly own a investment property. I am a higher rate tax payer. Preferably I would like to do a transfer of equity into her name to mitigate tax on the letting income. If Pepper Money are content with this the legal fees are not high. What are the implications when we sell? As I would no longer be on the title documents would I lose my CGT relief.
  • I am looking for a conveyancing solicitor to deal with my transfer of equity. Pepper Money are dealing with the remortgage. I thought of asking my financial adviser. I am lead to believe he will likely get a kickback for recommending someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
  • I jointly own a property in Wakefield , with a Pepper Money loan with my ex husband. He and his fiance are going to acquire my share. We had the go ahead from Pepper Money to remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Pepper Money (supposedly). Is it possible for us to do the Land Registry formalities?
  • I am planning on removing a name from a joint mortgage and the Pepper Money need me to use a lawyer to carry out the legalities. Can you recommend a reasonably priced Timperley conveyancing solicitor to deal with the transfer of equity? They need to be on the Pepper Money conveyancing panel.

Questions that your lawyer could ask about your Pepper Money Transfer of Equity

Please provide the details of anyone who jointly owns the property with you?

Where you are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Where you are adding a person on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Have you approached Pepper Money to seek consent to the Transfer of Equity

Is it the case that one of the registered proprietors died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

Please provide the details of anyone to be added to the property title?

Important warnings to consider in supplemental the above Pepper Money 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 conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

If your property is leasehold, provisions in the lease may require that you have a license to do so from 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 pursuant to 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 varies based on the valuation of the property at the time of completion of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Pepper Money.

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 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 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.


Frequently asked questions relating to Pepper Money transfer of equity