A transfer of equity means to add or remove an individual, or individuals, from the title deeds of a property, therefore granting or revoking ownership of that property. If you would like to transfer equity, our expert transfer of equity solicitors at Heringtons can help.
A transfer of equity might be appropriate where you and your partner, who own a property jointly, are separating and it has been agreed that one of you will buy the other out. It may be that you purchased a property on your own but now wish to add a partner to the title. Alternatively, it might be that you have chosen to transfer part ownership, to your adult child.
Transferring equity is not a decision to be taken lightly. When approaching this, it is important that you have the support of an expert solicitor, who can guide you through every stage.
Our specialists can provide support throughout the entire transfer of equity process, which includes:
- Legal advice for transfers of equity
- Preparing or reviewing transfer of equity legal documents
- Checking the legal title
- Support with negotiation
- Transfer of equity completion, and post completion tasks
Get in touch with our friendly, experienced transfer of equity solicitors
For advice and support with transfer of equity, please contact our expert solicitors in East Sussex. You can contact us at our offices in Battle, Bexhill on Sea, Eastbourne, Hastings or Rye.
Or fill in our online enquiry form and we will be in touch shortly.
Our transfers of equity expertise
Transfers of equity legal advice
Our expert solicitors at Heringtons can provide you with bespoke legal advice on transfers of equity.
We will explain your options for transferring property ownership, catering our recommendations to your situation, and ensuring that you understand your position and the implications.
Preparing or reviewing legal documents
Our specialist lawyers can support you by preparing and or reviewing the legal documents that you will need to complete a transfer of equity. Such documents include:
- The Transfer Deed, which confirms the transfer of the existing owner to the new owner.
- The Mortgage Deed, the solicitor may need to review the mortgage and obtain the consent of your lender. It may be necessary for you to arrange a new mortgage.
- The Declaration of Trust, required in cases of ownership where property is held as tenants in common and the respective shares are not equal .
- Stamp Duty Land Tax Return, if SDLT is payable on the transfer.
Checking the title
As part of the process, your solicitor will carry out title checks, to ensure that there are no legal issues present that could pose a risk, or impact the transfer of equity.
Associated duties may include conducting a Land Registry search, verifying the identity of the owners, and identifying any restrictions that could affect the transfer.
Support with negotiation
Your transfer of equity solicitor will be able to help you with any required negotiation to complete the transaction. For example, negotiation to arrange the transfer terms, financial matters, conditions, and how ownership rights will be divided.
Negotiation may be necessary between property owners and potential owners, or with lenders, for instance, where new arrangements for loans and or mortgages are required.
To learn more about how we can help with a change of equity, please contact our solicitors at Heringtons today.
Transfer completion
Once all required stages are complete, your equity transfer solicitor will oversee the transfer completion process. Lastly, your solicitor will ensure that the new ownership is registered correctly, by contacting the Land Registry with the appropriate details.
Frequently asked questions about transfer of equity
What is transfer of equity?
Transfer of equity is a process whereby property ownership is either granted or revoked, by changing who is on the title deeds of that property. It is common where couples get married or divorced and wish to add, or remove, one owner.
How long does a transfer of equity take?
If a transfer of equity is without complication, it may be possible to complete in approximately a month.
Where a transfer of equity is carried out on a property with a mortgage, how long it takes will vary according to the checks that are needed, and the length of time it takes to receive lender consent to proceed. It may also depend on obtaining a new mortgage offer.
When you work with us at Heringtons, we will attempt to provide a timeframe if possible. For more information about how the process works, please get in touch.
How much does it cost to transfer equity?
How much it costs to transfer equity varies on a case by case basis. You will be charged legal fees by your lawyer for tasks such as preparing the Transfer Deed, dealing with your mortgage lender, handling money transfers and registering the new ownership with the Land Registry. You may also need to pay disbursements such as Stamp Duty Land Tax.
Factors that affect the cost include:
- Whether the property is owned as tenants in common
- Whether you are transferring equity with an existing mortgage
- Whether the property is a leasehold or a freehold
- Property value
When you work with our expert transfer of equity solicitors at Heringtons, we will provide you with an accurate quote at the beginning.
Is Stamp Duty Land Tax payable on transfers of equity?
Stamp Duty Land Tax is only payable on a transfer of equity if the ‘chargeable consideration’ is above the £250,000 threshold. The chargeable consideration is the value of the share of mortgage being taken over, and the money paid for the equity, combined.
There are certain scenarios where Stamp Duty Land Tax may not be payable, including:
- Where you are gifting a share of a property.
- Where the transfer of equity is part of an agreement or court order when partners are divorcing dissolving a civil partnership, annulling a marriage or legally separating.
If you have questions about Stamp Duty, our residential property solicitors can help.
Do I need to pay tax on transfer of equity?
The tax implications of adding someone to a deed can be complicated and are very much dependent on the specific circumstances, and value of the equity.
For example, you might need to pay Stamp Duty Land Tax on a transfer of equity.
You might also need to pay Capital Gains Tax if you transfer equity to an individual who is not your civil partner or spouse.
If you are considering transferring equity, and are concerned about the tax implications, you should seek advice from a tax specialist.
Get in touch with our friendly, experienced transfer of equity solicitors
For advice and support with transfer of equity, please contact our expert solicitors in East Sussex. You can contact us at our offices in Battle, Bexhill on Sea, Eastbourne, Hastings or Rye.
Or fill in our online enquiry form and we will be in touch shortly.