Transfer of Equity

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Solicitor Helping Couple with Transfer of equity
LPC & LLM Ume-Kulsoom Anwar
Legally reviewed by: LPC & LLM Ume-Kulsoom Anwar

Transfer of Equity Solicitors

Whether you want to transfer all or part of your property’s equity, our transfer of equity solicitors can help. With our expert support, the transfer of equity process will be handled professionally and promptly.

Providing excellent client care is important to us, which is why we promise we will always be completely transparent about our fees, keep you fully up to date throughout the process and be efficient in our handling of your transfer of equity matter. This way you can be assured that your transfer of equity is handled quickly, and without unnecessary stress.

Get in touch with our transfer of equity solicitors today for a free, no-obligation quote and get started.

What is the ‘Equity’ of Your Property?

The ‘equity’ in a property is the total value of the property with any outstanding mortgage subtracted.

For example, if your home costs £250,000 and you still owe £150,000 on your mortgage, the equity is £100,000. If you co-own or want to co-own a property, you split the equity value, not the overall property value.

Why Transfer Equity?

The transfer of equity process essentially adds or removes someone to or from the title deeds of the property.

You might want to do this for several different reasons. For instance:

  • Your living arrangements are changing – maybe your spouse or partner is moving in, or you’re getting divorced and one of you is moving out
  • You want to gift some of the equity to a family member, for example to your children over the age of 18
  • You’ve received a court order for the transfer of equity
  • A financial advisor has recommended transferring your share

Regardless of the reason, our transfer of equity solicitors can help you through the process.

What is Involved in the Transfer of Equity Process?

When you instruct us to transfer equity on your behalf we will go through the following steps:

  1. We will request an official copy of your property’s title documentation. Your property’s title documentation is held by the Land Registry, which safeguards land and property ownership. If your property is unregistered, we will require the title deeds from you to check the title.
  2. After we receive your property’s title documentation we will review the same and prepare the ‘transfer of equity deed’. We will also clarify whether this transfer of equity is for consideration or not. If consideration is involved, we will need to assess whether stamp duty is payable. Consideration can also be in the form of an existing debt i.e. existing mortgage. If you are removing a party from the title, they will need separate representation.
  3. If you have an outstanding mortgage on the property, you will need to check with the lender to see if they are happy to proceed with the transfer of equity. They might require a remortgage application, therefore it is best to check with your existing lender first. The mortgage lender needs to agree to the transfer of equity, as the person added to the property title becomes responsible for the mortgage as well. If the property ownership is being transferred to one person, they will become fully responsible for the mortgage on their own. If the lender insists on a new mortgage, we will have to re-quote your fees for a transfer and re-mortgage transaction.
  4. Once everything is in order, we will invite you to the office to sign the documents.
  5. Once all documents are signed, we then register the transfer of equity deed with the Land Registry.

Our transfer of equity solicitors will always keep you fully informed throughout the transfer of equity process and will be available to answer any questions you may have.

Stamp Duty Land Tax (SDLT)

In England, you are required to pay Stamp Duty Land Tax when you buy a residential property worth over a certain amount. Stamp Duty Land Tax needs to be paid on any residential property – leasehold or freehold – whether it’s bought outright or with a mortgage. In Wales, the equivalent tax is called LTT Land Transaction Tax.

During a transfer of equity, a share of the property ownership is transferred to a new party, which is why SDLT may need to be paid again, even if it was during the initial purchase.

For properties with a transfer sum over £40,000, you’ll likely need to pay Stamp Duty Land Tax.

When you get in touch, our solicitors can explain exactly what SDLT may be payable, as the rules are complex.

How Long Does the Process Take?

A straightforward transfer of equity generally takes between two and four weeks. However, each transaction is different, and in certain cases, it could take longer.

When you instruct us to handle your case we will look at all the factors involved and advise you on how long we expect the process to take in your circumstances.

Our solicitors will always ensure that your case is handled swiftly and without any unnecessary delays.

How Our Solicitors Can Help You

With our expert advice and guidance, your case will be dealt with professionally and promptly.

We have expert property solicitors ready to deal with all aspects of residential freehold and leasehold conveyancing. Contact us online today, call us on 01254 274000 or try our online conveyancing calculator.

Our conveyancing solicitors can help clients across England and Wales.

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