Transfer of Equity

Why do a transfer of equity?

A transfer of equity occurs when a property’s owner adds or removes a person (or people) to or from the title on the home, altering the ‘ownership’ of the property from a legal perspective. It doesn’t necessarily involve the transfer of any money.
It's essential that you get expert legal advice when transferring equity as it can result in a notable change in circumstances for you and anyone else involved.

There are many reasons why you might wish to change who has legal ownership of your home, without putting it on the market and selling up., these include;

• Property is being gifted
• Court order
• Cohabitation arrangements have changed or ended for example a divorce
• Transfer between family members
• When a Trust is formed

What is the process for transfer of equity?

The process depends on the type of transfer required:

• The property title will be obtained.
• A valuation of the property will take place.
• Deed of Transfer will be signed.
• Remortgage or new mortgage is completed, if necessary.
• Lender's permission if there is an existing mortgage.
• Stamp Duty Land Tax Return – this is only required for buy-outs involving sums of money over £40,000 but not always applicable in all cases.

What is equity?

Equity is a legal term that explains how much of a property you own. You can think of it as the value of the home minus any outstanding mortgage.