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Top seven questions relating to Pepper Money transfer of equity

  • My ex-wife and I are searching for an affordable conveyancing lawyer to assist in a transfer of equity and remortgage with Pepper Money. I I am fearful of by bill escalating out of control and there's many conveyancing organisations who do transfer of equity conveyancing to pick from...who's the best?
  • When it comes to transfer of equity conveyancing involving refinance with Pepper Money should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • I currently have a joint Pepper Money mortgage with my step-brother and am looking into the possibility of him taking on the outstanding mortgage and subtracting myself from it, so as to enable me to purchase a property with my partner. The outstanding mortgage is in the region 200k, and the property value is approx 600k. Is this a transfer of equity? Is stamp duty involved?
  • I plan to refinance my apartment in Wakefield moving from Santander to Pepper Money. The maisonette is jointly owned but I would like it to be in my sole name once I remortgage. My former partner is OK with this and is willing to transfer equity but neither of us want to incur lawyer fees.
  • I already have a mortgage with Pepper Money and am maintaining my existing mortgaging but wish to have it in my name only so my ex will be removed from the deeds. How long does the whole transfer of equity process take?
  • I co-own a flat in Rye , with a Pepper Money mortgage with my former partner. Him 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 conveyancer for Pepper Money (apparently). Is it possible for us to deal with the Land Registry formalities?
  • I bought a house with my brother six years ago Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name comes off the Pepper Money mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Examples of questions in a lawyer form concerning a Pepper Money Transfer of Equity

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

Will there be any payment between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what amounts

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

Where you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

Is the transfer of equity subject to a court order? If yes please supply a copy

Information to consider in supporting the above Pepper Money transfer of equity Info :

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 titles

If your property is leasehold, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not complied with you may be in violation 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 lawyer 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 conclusion of the transfer of equity conveyancing.
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 conveyancing solicitor 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.

Content 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.


Frequently asked questions relating to Pepper Money transfer of equity