Transfer of Equity

Are you looking to transfer the ownership of a property from one person to another?

A transfer of equity means the legal ownership of the property is changed without the property being sold. Equity is the value of the property after the mortgage and or loans if any have been repaid.

Transfers of equity can take place for different reasons, for example:

  • when two people decide to live together in a property already owned by one of them;
  • when a couple decide to marry or enter civil partnership they may want to put their partner’s name on the title deeds;
  • as a consequence of a couple deciding to separate;
  • for tax or other reasons.

There are a number of factors to consider:

No mortgage
If there is not a mortgage on the property it can be transferred straight away, however, you should consider; if transferring into joint names, whether your share in the property should be equal. Please take a look at our section on joint ownership.

With mortgage
If the property being transferred has a mortgage and you intend to continue with the same mortgage, it will be necessary for you to obtain your mortgage lenders’ consent or permission. This applies whether you are proposing to add or remove someone’s name from the title deeds.
However, some people take this opportunity to move to a new mortgage lender, in which case the new mortgage application needs to be made in the name/s that you want to be on the title deeds.

Removal of someone’s name
If someone’s name is being removed from the title deeds they will sometimes receive a payment from the person whose name is to remain on the title deeds. However, if there is little or no equity in the property, then a payment may not be made and instead they may be released from the liability of paying the mortgage subject to the agreement of the mortgage lender.

This can be a very straight forward process but you need to ensure that it is undertaken correctly to avoid problems in the future.

Our expert property solicitors can help with every stage of a transfer of equity, providing the support to complete your transfer efficiently and correctly. We’ll contact the Land Registry on your behalf and ensure that all the necessary documentation is completed properly. We will also explain any factors that may arise from the transfer – giving you the peace of mind that all the legal details have been covered correctly.

Call us today on 0800 633 5543.

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