Conveyancing solicitors for transfer of equity
Here at Homeward Legal, we're here for you every step of the way, from buying your first home to selling, remortgaging and downsizing. We're even here for you whatever the reason when you want to transfer ownership of the property.
What is a transfer of equity?
A transfer of equity is a process that happens when an owner wants to change property ownership by adding or taking individuals off from the legal title. This could mean creating a co-owner, removing a name or transferring it all together.
The video below explains the transfer of equity process in more details.
What does equity mean?
What does equity mean?
Equity is simply the residual value of the property after any mortgage is deducted from the current market value.
For example, if your property is worth £250,000 and you have an outstanding mortgage of £100,000, you have £150,000 equity in the property.
Why might I need to transfer equity?
Why might I need to transfer equity?
There are a number of reasons for transfer of equity, such as marriage or divorce. You may want to transfer equity to your son or daughter, or to another family member.
The reasons for transfer of equity are unique to every person and property, and Homeward Legal are sensitive to the fact there will be multiple parties involved in such matters. You can rest assured that your transfer of equity will be dealt with discretion and care, and in a timely manner.
What if there is no equity or negative equity in the property?
What if there is no equity or negative equity in the property?
It is possible to find yourself in a ‘negative equity' situation when the outstanding mortgage exceeds the current market value. This could happen when a buyer has taken out a high LTV (Loan to Value) mortgage and the value of the property has subsequently fallen.
In these circumstances, the future owner will need to ensure they have made suitable arrangements with the mortgage lender. Homeward Legal's nationwide panel of conveyancing solicitors are experienced in working with owners and lenders to ensure this process runs smoothly.
What is the transfer of equity process?
What is the transfer of equity process?
A transfer of equity can be incredibly simple, as long as all of the terms and conditions are clear between the parties. Once all parties are in agreement, an official document called a Deed of Transfer is drafted for all parties to sign. Any existing mortgage formalities are also completed. If the new owner or part-owner is taking out a new mortgage, then your transfer of equity solicitor would also represent the lender's interests in completing this.
Transfer of equity can have an impact on stamp duty, capital gains tax and land tax, and matters are often accompanied by a remortgage too. If you have a mortgage, you are obligated to inform the lender if the names on the deeds are changing. You cannot change a name on the mortgage without changing the deeds, and vice versa. In these cases, Homeward Legal will treat the equity transfer and remortgage as one piece of work, aiming to complete this as soon as possible.
How long does a transfer of equity take?
How long does a transfer of equity take?
The lengthiest part of the transfer of equity process usually surrounds the mortgage lender assessing the eligibility. If you are transferring equity without a lender being involved, the process can be incredibly quick. The more complicated the transfer or equity, the longer the process can take. But, if both parties are agreed and can sign the document promptly, it can be a relatively smooth process.
The post-completion formalities with an equity transfer are similar to those carried out on a purchase. An SDLT (Stamp Duty Land Tax) return may need to be completed (even if no stamp duty is due) and sent to HMRC within 30 days of completion.
The next stage is to register all interests and charges over the property at the Land Registry, at which point the property is formally registered in the new party's name(s).
Do you pay stamp duty on transfer of equity?
Do you pay stamp duty on transfer of equity?
Whether you need to pay SDLT or not depends upon the ‘consideration' and the nature of the transfer of equity. Consideration refers to the amount of the property you will take from the previous owner. Consideration includes both equity (the value of the property) and the value of the mortgage.
If the property is a ‘gift' and there is no mortgage, or the property is split equally between two people, there will be no stamp duty to pay. Similarly, if couples are legally separating or transferring equity by court order, there is no need to pay SDLT.
However, in most cases when the property is split unequally, a mortgage is transferred, or the amount being transferred is over the stamp duty threshold, there may be some tax to pay.
Whatever your circumstances, your transfer of equity solicitor will explain any expected fees and payments to help you take the right course of action for your transfer of equity.
Is there a Land Registry fee for transfer of equity?
Is there a Land Registry fee for transfer of equity?
There is a Land Registry fee for transfer of equity, which costs between £20 and £125 depending on the price bracket your property falls into. You will also be charged a nominal fee for the official copy of the register of title from the Land Registry, as well as online ID checks.
What are the solicitor costs for transfer of equity?
What are the solicitor costs for transfer of equity?
Your solicitor's transfer of equity costs will vary depending on the value of your property, whether the property is leasehold, the mortgages on the property, and whether you need to remortgage.
But when you complete a transfer of equity quote with Homeward Legal, the costs will be explained to you. To find out how much a transfer of equity solicitor costs with Homeward Legal, you can also call us on .
Why you can trust Homeward Legal when it comes to transfer of equity
We've established an excellent reputation you can trust and helped over 30,000 customers in the past 13 years.
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Get in touch with us for your transfer of equity
Our friendly and trusted team can help you. Call us today on and we'll make sure to explain everything you need to know about transfer of equity.
Alternatively, you can fill the form below and get an instant quote.
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Frequently asked questions...
No. With Homeward Legal's panel of conveyancing solicitors, when you get a quote for conveyancing services from us, the legal price we quote you is the price you'll pay.
You should be aware, however, that some property solicitors do not give accurate quotes, only estimates, often putting standard conveyancing fees in the small print, possibly to make the headline offer seem far more attractive. The final bill you receive may then be much more than you budgeted for as a result. With Homeward Legal, we offer Fixed Legal Fee conveyancing quote with no hidden charges and with our No-Completion No Fee.
If in the unfortunate event that your property transaction falls-through you will not be liable for any of the conveyancer's fixed legal fees for the work completed.
For a transfer of equity, you'll need a Transfer Deed (TR1), Stamp Duty Land Tax (SDLT) form (if applicable), an application to the Land Registry, and consent from any mortgage lenders. Additional documents may include identification verification, a Mortgage Deed (if refinancing), and possibly a Declaration of Trust to clarify ownership shares. It's advisable to consult a solicitor to ensure all paperwork is correctly handled.
Yes, a transfer of equity can affect the existing mortgage. If there's a mortgage on the property, the lender's consent is required before the transfer can proceed. The lender may need to assess the financial situation of the parties involved and ensure the remaining borrower(s) can manage the mortgage. In some cases, the lender might require a new mortgage agreement or a change in the loan terms.
The transfer of equity changes the legal ownership of the property, either adding or removing someone from the title. This can affect each party's share of the property, their rights, and responsibilities, including financial obligations such as mortgage payments. It's important for all parties to clearly agree on their new ownership shares and any financial arrangements, which may be outlined in a Deed of Trust.
A new valuation may be required, especially if the transfer involves buying or selling a share of the property. The valuation helps determine the property's current market value. Typically, this is conducted by a professional surveyor or valuer, and the cost is usually covered by the parties involved in the transfer.
Yes, all parties involved in the transfer must agree to the terms. There may be restrictions or complications, such as obtaining consent from a mortgage lender if there's an existing mortgage, or legal and financial agreements that need to be clarified. If there are any disputes or complications, it's important to seek legal advice to ensure the process runs smoothly.
