What is a transfer of equity?
Transfer of equity is legally removing or adding someone to the title deeds of a property. It differs from a sale as at least one of the listed owners will stay the same.
Whether you wish to add or remove a person from the ownership of a property, our transfer of equity legal experts can help.
Reasons for transfer of equity
Transfer of equity may be required for a number of different reasons, such as:
- Divorce and separation
Couples who have divorced or separated and still own a property together may choose to remove one person from the ownership so that the other person can keep the house to live in, particularly if children are involved. - A new relationship
If the current owner gets married, they may wish to change the property from a single to joint ownership or add a new partner or co-habitant to the property deeds. - Tax reasons
In certain circumstances the current owner may wish to transfer the equity of the property as a gift or transfer for other tax reasons. It is advisable to seek tax and legal advice before taking this approach as it can be quite complex depending on the situation.
Transfer of equity process
The first step in the transfer of equity process is to gather all required documentation including information about the transfer of equity request and a copy of the Title Register for the property (this can be obtained from the Land Registry).
Your conveyancer will then:
- Confirm the information provided is correct with the Land Registry: Identities of each party will also be verified at this time.
- Review the title and property deeds: Your solicitor will check for any restrictions on the property and check for a mortgage.
- Prepare the deed of transfer documents to be signed by all parties: A legal document will be prepared ready for parties to sign
- Check whether any Stamp Duty Land Tax is payable for your property: the amount of any existing mortgage is taken into account in calculating whether SDLT is payable.
- Obtain formal consent: Third parties (if required), such as mortgage lenders, will be notified to provide their written consent to the transfer of equity. Current co-owner/s of the property will also need to provide formal consent.
- Sign the deeds and notify land registry and submit SDLT return (if applicable): Once happy with the legal documents all parties will sign for the new ownership and the details will be passed to the Land Registry to update the deeds.
- The transfer of equity is complete: As soon as all funds have been paid and paperwork has been signed, the transfer of equity is complete.
How long does a transfer of equity take?
The transfer of equity process can typically take between 4 to 8 weeks depending on several factors, including the complexity of the case, such as the involvement of mortgage lenders and search and surveys.
Your legal expert dealing with your transfer of equity will keep you updated throughout the process so you are kept aware of how long the process will take.
Transfer of equity costs
Our legal experts will always make you aware of fees before taking out any work, including making you aware of the mandatory Land Registry fee, which you must pay to notify the Land Registry of the new deed.
Additional costs of transfer of equity can vary depending on:
- Whether there is a mortgage to pay off or transfer.
- Where the acquiring parties are taking out a new mortgage.
- If SDLT (stamp duty) is payable, this can apply if there is an existing mortgage even if there is no payment between the parties.
To find out more about our other conveyancing services and our fees please see our fees page.
Why choose SAS Daniels as your transfer of equity solicitor
Our legal experts will make sure that the entire transfer of equity process is fully explained to give you the peace of mind that all legal details have been covered for the transaction.
Our team is accredited by the Law Society’s Conveyancing Quality Scheme (CQS), so you can rest assured that a trusted conveyancer with the technical expertise and best practice skills will be with you to guide you throughout.
Whether you wish to add or remove a person from the ownership of a property, or even change the person(s) entirely, we can help with all your transfer of equity needs.
