If you are transferring your property to another person or removing a person from the title, we can assist you throughout the process.
A transfer of equity is a change in the co-ownership of a share or interest of a property. There are many reasons why this might happen, for example:
- To add a spouse to your property deed if you have married or remarried.
- To remove an ex-partner from the property deed if you have either divorced or separated.
- The interest can be transferred for a sum of money or it may be as part of an agreement, for instance on divorce.
- To change the ownership percentages of a jointly owned property
- To reduce inheritance tax liabilities or take advantage of personal capital gain limits
Our partners have over 50 years combined experience. We specialise in family law including divorce, children issues and financial implications, and also in property and commercial work, and wills, estate and Probate. Though we specialise in family law, we can help in a wide range of legal matters.
What is equity?
Equity is the value of your property less the outstanding sum of your mortgage. For example, if you own a home costing £300,000 and you have a remaining mortgage of £120,000, you have £180,000 equity.
If you got married and want to co-own the property with your new spouse, you can only transfer half of the equity – worth £90,000 in this case – rather than half of the value of the overall property.
Transfer of ownership is typically much simpler than buying or selling a property but it’s always reassuring to know that our conveyancing solicitors are on hand to make sure everything is done correctly. Whether you wish to add your new partner on to the deeds, or transfer ownership of a property completely over to your grown-up children, you can count on Ross Williams Solicitors to lead you through the complete process. To speak to our specialist transfer or equity conveyancing solicitors contact us on 01462 636666 or complete our online enquiry form.
What’s involved in transfer of equity?
In order to start a Transfer of Equity you will first need an official copy of the title for the property. This document will be used to check if there are mortgage outstanding on the property or any other restrictions involved.
Ross Williams Solicitors will then:
- Review the title deeds or property deeds
- Check the identity of the clients
- Prepare the transfer deeds
If there are is no mortgage outstanding on the property, the existing and new owners of the property can sign the transfer deed in the presence of a witness. The conveyancing solicitor will register the transfer of deed at the Land Registry. A stamp duty certificate is required if the value of the transaction is above £40,000 threshold.
Where there is a mortgage outstanding on the property, you will also need to obtain consent from the current mortgage lender to proceed with the transfer. By adding someone to the title, they will become equally liable for the mortgage and running costs of the property. Likewise, if you are removing someone from the title, they will pass their liability on to the remaining owners of the property. The mortgage lender will want to check that the remaining owners are able to maintain mortgage payments before agreeing to the transfer.
Ross Williams Solicitors will contact the mortgage lender and request written consent to the transfer. The mortgage lender may want to change the terms of the mortgage before consenting. Once written consent is obtained the existing and new owners of the property can sign the transfer deed in the presence of a witness. The conveyancing solicitor will register the transfer of deed at the Land Registry. A stamp duty certificate is required if the value of the transaction is above £40,000 threshold.
It is possible that the mortgage lender objects to the transfer, if this does happen you will need to repay the mortgage before you can proceed with the transfer. This can be either with a remortgage with a different lender who agrees to the transfer or with a cash payment.