Transfer of Equity Explained
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Transfer equity is the process of adding or removing someone from the title deeds of a property.
At Eatons, we have helped numerous clients transfer equity for several reasons including court orders, cohabitation agreements and the transfer of property between family members. In this guide, we’ll detail the transfer process and explain how to ensure proceedings are as stress-free as possible.
A transfer of equity happens when a property owner adds or removes a person from the title of the home, intending to alter the ownership of the property from a legal perspective.
The process is most commonly applied when a couple marries or moves in together or if a married couple divorce and decide to leave the property. The transfer allows for a change of names on the deeds to reflect the ownership.
If a person wants to remove themselves from the deeds of a house tied to a mortgage, they will also need to be released from the terms and conditions of the agreement.
A mortgage is a type of credit agreement making it impossible to leave the household deeds without finalising the debt. There are a few options to consider when transferring equity when a mortgage is involved, such as discharging the mortgage, asking for approval from the lender to transfer the property, stamp duty may be payable depending on the consideration or remortgaging the house.
It is also possible to transfer the equity as a gift although this is a less common option.
Once the decision has been made to transfer the property, a solicitor will guide you through the process. There are three key steps of equity transfer:
To begin the transfer, a solicitor will need to obtain an official copy of the title for the property. The title deeds are then reviewed to ensure there are no complications such as restrictions on the property.
For the transfer to be completed, any third parties involved in the transaction will need to provide written consent, including the mortgage lender.
Once the documents have been signed, the details of the transfer should be passed on to the Land Registry. The fee for this process can range between £50 to £1000, and the exact fee will depend on the property’s value.
No matter your circumstances, you must receive expert legal advice. With specialist experience helping clients across Bradford,Bingley, Leeds and Yeadon, our team of qualified Conveyancers provide the best conveyancing advice in Yorkshire.
To discover more about equity transfers or to book a 30-minute free consultation with us, contact a member of our dedicated team today.