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Transfer of Equity

A transfer of equity occurs when one or more property owner(s) sells their share to another co-owner. The process can be incredibly straightforward, as long as everyone involved understands the terms and conditions and the right legal advice.
Transfer of Equity UK

What are the most common situations for a transfer of equity?

Include your spouse in your property’s deed if you have married or remarried.

 

  • Exclude your ex-partner from the deed if you have divorced/separated
  • Changing title deeds to include offspring/relatives
  • Changing the percentage shares owned by the co-owners of a property or buy out a co-owner’s share in the property
  • Reduce future inheritance tax liabilities or take advantage of personal capital gains limits

 

Transfer of equity

What is the process?

  • Obtain an official copy of the property title, which will be used to check if there are mortgages on the property or any other restrictions that might be involved.
  • DV solicitors will review the title deeds or property deeds, check the parties’ identity, and prepare the transfer deed for you.
Note: If there are no mortgages on the property, the existing and new owners of the property sign the transfer deed in the presence of a witness and the conveyancer registers the transfer deed at the Land Registry. A stamp duty certificate is needed if the value of the transaction is above £40,000.

If there is a mortgage on the property, the consent of the mortgage lender is needed before proceeding with the transfer because if you are including someone to the title, they will become equally liable for the mortgage. It goes the same way If you are excluding someone from the title, the liability will be passed on to the remaining owners of the property. The remaining owners will be checked by the mortgage lender if they are able to maintain mortgage payments before agreeing to the transfer.

As your conveyancer, we will get in touch with the mortgage lender and request written consent to the transfer. The mortgage lender may want to make amendments to the terms of the mortgage before agreeing. The process can continue once the written consent is received. However, if the mortgage lender did not give their consent for the transfer, you have to repay the mortgage before continuing with the transfer either with a cash payment or acquiring a mortgage with a different lender who approves the transfer.

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