Transfer of Equity Solicitors in Essex
What is a Transfer of Equity?
A Transfer of Equity is a change in the co-ownership status of a property where one (or more) of the legal owners remains on the title whether another/others are added or removed. You might arrange a transfer of equity to add a spouse to your property title or may remove a co-owner if you are buying out that co-owner’s share. Similarly, you may wish to change the percentage shares owned by the co-owners of a jointly owned property depending upon the contributions being made.
Importance of Transfer of Equity
Transfers of equity can also be made for tax planning purposes. You should seek specialist financial advice from an accountant or tax advisor if intending to transfer equity for tax planning purposes.
Because a transfer of equity relates to a transfer of an interest in land it may give rise to a liability to pay Stamp Duty Land Tax (SDLT) in the event of monetary value in exchange.
Common Reasons for an Equity Transfer
Choosing a transfer of equity can be for many reasons. Some of the most common scenarios include:
- Divorce or separation – Following the breakdown of the marriage, the property is commonly the most significant asset, and an agreement will need to be reached as to what to do with it. Often, in cases involving children, one party will be removed from ownership so that the other party can remain in the property with the children.
- A new relationship – If you are already the property owner and have started a new relationship you might want to add your new partner to the property deeds using a transfer of equity.
- Buying a property with family or friends - This is becoming a popular way for people to get onto the property ladder. At some point, one of the owners might choose to buy out another equity partner using a transfer of equity.
- Tax efficiency – A property can be treated as a gift, minimising the tax owed when it’s transferred. You should always seek professional legal advice before making any changes. Please call our Romford office for more information on 01708 784000.
Our Transfer of Equity Services
Residential Property Enquiry
Fill out the form and a member of our team will get in touch to discuss how we can help.
Transfer of Equity Solicitor Expertise
The residential property team at Mullis & Peake are experienced in dealing with transfer of equity cases. Our team are always available to talk you through your options. Contact the team on 01708 784000 for more information.
Comprehensive Transfer of Equity Advice
We provide comprehensive Transfer of Equity advice. Our conveyancing team are always available to talk you through your options. Contact the team on 01708 784000 for more information.
Understanding the Transfer of Equity Process
Step-by-Step Guide to the Process
- Your solicitor will check the title and property deeds for your property
- Your solicitor will complete Identity checks
- The transfer deed will then be prepared
If the property has a mortgage attached to it, you will need the consent of the mortgage lender before the transfer can be completed. In instances when there is no lender the new owners are required to sign the transfer deed with a witness. If the value of the transaction is more than £40,000 a Stamp Duty land Tax certificate will also be required.
Required Documentation for Transfer
To start the transfer of equity process you will need to provide a copy of the property title to the conveyancing lawyers to review.
Why choose Mullis & Peake as a Right to Buy solicitor?
Experienced Team of Solicitors
We have an experienced team on hand to deal with your Equity Release matter from the beginning until conclusion of the matter. The conveyancing team has many 5-star reviews on Review Solicitors and have won awards for their client service.
Our clients say about us
Costs Involved in Transfer of Equity
Breakdown of Transfer of Equity Costs
Our fees are £625 + VAT for a transfer of equity without a mortgage and £825 + VAT with a mortgage.
Factors Influencing Costs
You will need to pay a Land Registry fee to register the new change in ownership of the property. This fee ranges from £20 to £500 depending on the equity transfer value bracket that your property falls into.
Please use our Conveyancing Fee Calculator to obtain a quote for a Transfer of Equity.
Mortgage Considerations in Transfer of Equity
Understanding Transfer of Equity Mortgage Implications
If the property is mortgaged, a written letter of consent from your mortgage provider will be required before the transfer of equity can be completed. By adding another person to the property title, they also then become liable for the mortgage. In some cases, the mortgage might need to be refinanced.
Remortgaging During a Transfer
You are able to re-mortgage your property at the same time as completing the transfer of equity. You will need to contact a mortgage advisor first concerning the re-mortgage.
Protecting Your Interests with Expert Advice
Transfers of equity cases can be complex. Before choosing to go ahead with an equity transfer, we would always recommend seeking financial advice from an accountant.
Frequently Asked Questions
Mullis & Peake charges a fee of £625 + VAT for a transfer of equity when the property does not have a mortgage and £825 + VAT when there is a mortgage. Additional costs such as disbursements will also need to be paid.
Equity is transferred in a property by either adding or removing a person from the property deeds.
Yes, you can transfer or gift property to your children. However, it is important to note that they must be over the age of 18 to be able to legally own the property. If your children are under the age of 18 when the transfer or gift is made, the equity will be held in a trust, accessible once they turn 18.
To remove a name from the title deeds of a property you will need to complete a Transfer of Property (TR1) form. The completed form will need to be submitted to the Land Registry.
Borrowing against a property or using a transfer of equity is a common way to release cash from one property to invest into another property.
Equity is the amount of the property that you own. For example, if you purchased your property from £350,000 but it’s now valued at £420,000, you have £70,000 worth of equity.
Yes, it may be possible depending on your circumstances to remortgage your property to release equity. Please see our equity release page for more information about this.
Yes, if you have equity in your current home this can be used as the deposit for your new purchase.
Waiting for a mortgage lender to assess your eligibility is the most time consuming part of obtaining a transfer of equity. However, if you are not involving a lender (mortgage provider) then the process can be relatively quick.
Mullis & Peake have a specialist team in residential property ready to help you. Contact us online today or call us on 01708 784000.
Alternatively, request a call back to have one of our team contact you at a time that suits.
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Paul qualified as a solicitor in 2010 and specialises in Residential Property matters.
