Equity is the total value that remains after the outstanding mortgage (if applicable) has been deducted.
To transfer equity is a process that adds or removes one or more people from the legal title/ownership of the property, this may be partial or in full.
Here are a few different reasons you may wish to do this, perhaps a couple has ended their relationship, or property is being gifted.
What process will I have to go through to transfer equity?
There are different types of transfers and therefore the process may differ slightly, but the usual step will be:
- Obtaining the property title
- Property valuation
- Singing the Deed of transfer
- (If necessary) completing a remortgage
- Obtaining the lender’s permission if there is an existing mortgage
- Stamp Duty Land Tax Return (only when the buy-out involves a sum of money exceeding the amount of £40,000)
- Registering the change of ownership at HM Land Registry
How much will transferring my equity cost?
Costs differ depending on the specific requirements/circumstances.
If there is a mortgage involved the transfer may be more complex and therefore cost more then transferring equity on a property without a mortgage.
It is likely, in all cases, that there will be a Land Registry fee to pay for making changes to the registered owners of the property.
I need a transfer of equity, where do I start?
The transfer of equity can be complex and usually the process will vary due to your specific circumstances. It is important to have an experienced solicitor that way you know you are in safe hands.
Contact us today and we can match you with an experienced solicitor suited to you individual requirements.