Adding a partner to your title, removing an ex-partner, or gifting a share to a family member. Here is how a transfer of equity works and what to watch for.
A transfer of equity changes who legally owns a property, without the property being sold on the open market. At least one of the existing owners stays on the title, which is what distinguishes it from an ordinary sale.
When people need one
- Adding a spouse or partner to the title after marriage or moving in together
- Removing a former partner following separation or divorce
- Gifting a share of a property to a child or other family member
- Restructuring ownership between joint owners or investors
- Transferring a property into or out of a trust
How the process works
We check the legal title, obtain your lender's consent if there is a mortgage, prepare the transfer deed and arrange for it to be signed and witnessed correctly. We then deal with any Stamp Duty Land Tax return and register the change of ownership at HM Land Registry.
Three things people often overlook
First, if there is a mortgage, the lender must agree. A person joining the title will usually need to join the mortgage too, and someone leaving it needs to be formally released. Second, Stamp Duty Land Tax can be payable where the person taking a share also takes on mortgage debt. Third, it is worth deciding at the same time whether you will own as joint tenants or tenants in common, because that determines what happens to the property if one of you dies.
A transfer of equity is usually quicker and less expensive than a sale, but it still deserves proper advice. We will explain the options and the tax position clearly before anything is signed.
This article is general information, not legal advice. For advice on your own circumstances, speak to a Solicitor & Director on 07449 567711.
