Transfer of Equity
Transfer of Equity Solicitors
A Transfer of Equity involves changing the ownership of a property, either by moving it from one person to another or adding/removing someone from the title.
Whatever the reason for deciding to do this it is important to seek professional assistance when altering the legal ownership of your property. Our Transfer of Equity lawyers have many years of experience dealing with property transactions and are able to take care of the process on your behalf.
What is a Transfer of Equity?
“Equity” refers to the value of the percentage of your property that you own outright. It is the value of your home overall, minus any outstanding mortgage or secured lending.
A Transfer of Equity involves changing the legal owners of a property. You may wish to explore the option of equity transfer in the following circumstances:
- Marriage. If a couple are getting married, or entering into a civil partnership, they may wish to share ownership of their home.
- Divorce or separation. Conversely, you may wish to remove a name from the title deeds when a relationship ends.
- Tax planning. It may be advantageous to share ownership with children or other family members, in order to mitigate future inheritance tax liabilities.
- Forming a Trust. You may wish to protect property assets on behalf of a loved one who has difficulty managing their own finances.
- Change of circumstances. You may wish to realign shares of a coowned property, or buy out a co-owner.
Please note that an equity transfer is not usually necessary to remove a deceased person’s name from title deeds. This may simply require submission of the Death Certificate to Land Registry. Our lawyers can advise you on this at the time.
Transfer of Equity Process
In order for our Property Lawyers to begin the Transfer of Equity process, we will first need to obtain a copy of your title deeds from land registry. Using this document, we can check any outstanding mortgages on the property or any restrictions that might affect your property transaction.
If there is an outstanding mortgage you will need their consent to make changes to the legal owners of the property before the lawyers can progress the transfer for you.
All existing legal owners must agree to the transfer or there must be a court order in place requiring the transfer.
After reviewing the property deeds, receiving any mortgage lender consent and performing identity checks, our Property Lawyers will prepare the transfer.
The process will varies according to whether there is a mortgage on the property. If you own your home outright, the new and existing owners can sign the transfer deed straight away. If there is a mortgage on the property the mortgage lender may also wish to sign the transfer..
To complete the Transfer of Equity process, you must pay any outstanding Stamp Duty Land Tax. We will advise you on any Stamp Duty Land Tax liability that may apply.
Once the transfer is signed by all parties and fees paid our Conveyancing Lawyers will register the change with the Land Registry.
Speak to Jackson Lees
If you are considering a Transfer of Equity, speak to our experienced Property Solicitors online or by calling 0151 282 1700.
Our highly experienced team of Property Solicitors have helped countless clients to transfer equity in their properties. We are proud members of the Conveyancing Association, a collection of the top specialist UK Conveyancers. The association aims to work proactively to improve the conveyancing process, and to formulate and implement best practice nationwide.
Whether you are buying or selling a property, or interested in transferring or releasing equity, we can help. Our solicitors can advise you on what needs to be done throughout the process.
Here are a few links that you might find useful:
Do you have to remortgage for a transfer of equity?
It is not usually necessary to remortgage in order to complete a transfer of equity. Usually, it is possible to add or remove a named borrower from your existing mortgage agreement.
However, if your mortgage lender does not consent to a transfer of equity, you may seek to remortgage with another provider. In these circumstances, our expert Property solicitors can guide you through the remortgaging process before transferring equity.
How long does a Transfer of Equity take?
A straightforward transfer of equity can be completed in around 4-6 weeks. However, the majority of cases involve a mortgaged property, which will add extra steps to the process and require more time. Delays may be caused if your mortgage lender wants to change the terms of your agreement before consenting to the transfer.
Our Transfer of Equity solicitors will work as quickly as possible, aiming to deliver an efficient and convenient transaction for you.
What is a Transfer of Equity form?
Form TR1 refers to a form to transfer a property or register a title deed for the first time. Form TP1 is the paperwork required to transfer part of a property - such as separating ownership of a garden from a building on the same land. It must be completed and registered in order to transfer part of a property.
These forms are accessible for homeowners who wish to complete a property transfer themselves. However, if your property is mortgaged, it is likely that your lender will insist that you seek legal advice. There are many stages of compliance and necessary documentation to complete a Transfer of Equity. Our experts can give you peace of mind and take care of the forms and registry on your behalf.