Arranging for the transfer of equity on a property you own can be stressful, especially if it comes after something such as a break-up or divorce.
But it needn’t be that way if handled correctly. First4Lawyers can make the transfer of equity process simple for you, and our team of conveyancing specialists take great care to ensure that you are dealt with sensitively during what can be an emotional time.
If you’re unsure about how to begin the transfer of equity process, or if you are ready to act and want to access the very best legal advice and assistance, contact First4Lawyers for a no-obligation discussion of your circumstances.
What is transfer of equity?
Transfer of equity occurs when the owner of a property wants to add a person to, or remove a person from the register of a property, or when equity in a property is increased or decreased.
This process can be required when a property is being passed to a relative, if a couple has split up, or if a single person wishes to add a partner to their title deed. Any money that is invested in the property will be transferred to the people whose names remain on the register after the process is complete.
To carry out a transfer of equity, permission must first be sought from the mortgage lender. A Deed of Transfer document is drafted and all parties involved are asked to sign it. Solicitors from First4Lawyers work hard to ensure that sensitive situations such as break-ups and divorces are handled carefully when liaising between parties.
Often, when the owners of a property have ended their relationship, it will be necessary for one party to pay the other for their share of the equity. They might also need to take out a new mortgage on the property, with their new circumstances taken into account.
Once the property has been valued and the title has been investigated, the Deed of Transfer signed, and any remortgage completed, it might be necessary to complete a Stamp Duty Land Tax Return – although this is only required when the buy-out involves sums of money of more than £40,000.
The final stage of the transfer of equity process is to register the change of ownership at the Land Registry.
What are the costs involved in transfer of equity?
Once we know your specific circumstances, such as whether your transfer of equity involves a property with a mortgage, and how much equity you have in the property, First4Lawyers can provide you with a guide to your fees for the entire transfer of equity process.
The costs differ depending on how much money is changing hands, any buy-out process that is required, and the insurance fees that will protect your mortgage lender from financial losses if anything revealed in searches affects the value of the property.
If you are transferring equity on a property with no mortgage, the process is relatively straightforward and the costs will be lower than if there is a buy-out and re-mortgage required.
In all cases, there will likely be a Land Registry fee to pay for changing the owners of a property.
I need to transfer equity – what should I do?
It can be a complex process depending on your specific circumstances. But by contacting First4Lawyers, you can gain access to experienced property solicitors who will be able to advise you on the best way to proceed. They’ll also deal with all the difficult parts so you don’t have to worry about them.
Crucially, our solicitors understand the potential sensitivity of property transfer, and work hard to ensure that your personal circumstances are treated with the utmost care.