Transfer of Equity and Transfer of Ownership Solicitors
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Whatever your reason for wanting to transfer your equity or ownership to someone else, it is always important to have a professional who understands the process helping you make the change.
If you're looking for experienced transfer of equity solicitors to help you change property ownership quickly and securely, Holden Smith Law offers expert guidance throughout the process.
At Holden Smith Law, our team of solicitors and conveyancers has been assisting clients with transferring equity in their properties. Communication is our priority. We will provide you with regular updates on where your transfer is up to, and you can track it through our app, which provides 24/7 updates.
Contact our team today by calling one of our offices or by completing our online enquiry form. Alternatively, press the button below to receive an instant online quote.
What is transfer of equity?
Property equity is the amount of a home or property that you outright own. The equity does not include the portion of the property owned by your mortgage lender.
The transfer of equity is the legal process by which one person transfers all or part of their equity in a property to another person. People can also follow the same process to transfer ownership of a property to another party.
Why do people transfer equity or ownership of a property?
There are several reasons why people transfer equity or ownership of their property to another person. Some of the most common reasons include:
Gifting the property to a family member, including their children.
You wish to transfer part of the property to your spouse or partner to make them joint owner.
You are divorcing or separating from your partner.
The courts have ordered you to transfer the equity.
To change the house ownership
To change the title of a property
No matter what your reason is for transferring property ownership, the residential property team at Holden Smith Law can guide you through the transition process.
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How to work out the equity in your property
To work out the amount of equity that you have in a property, you must subtract the amount that you still owe your mortgage lender from your property's current market value. For example, if your property is worth £200,000 and you have a £150,000 mortgage left, the amount of equity you would have in that property is £50,000.
The transfer of equity process
Once you have instructed Holden Smith to transfer the equity or ownership of your property, your solicitor or conveyancer will begin the process of the transfer. The process typically follows these steps:
We will receive and review your property's title documents or title deeds. The title documentation is stored with HM Land Registry. If the property is not yet registered, then the title deeds will need to be provided.
Once the documents or deeds have been reviewed. We will draft a transfer of equity deed. This deed will outline who is being added and/or removed from the title deeds.
Whilst the transfer of the equity deed is being drafted, your solicitor will also review whether stamp duty is payable. This is known as consideration. If you are gaining equity on a property, the consideration depends on how much of the property you are taking on from the previous owner.
If there is an outstanding mortgage on the property, you will need to contact the mortgage lender for their approval to transfer the equity. This is the part of the process that can delay the transfer. It is always recommended that you speak to your lender before starting the process to ensure a smooth transition. In some circumstances, your mortgage lender may require you to remortgage.
Once the lender approves the transfer, you will be required to sign the transfer of equity deed and any other relevant documents. After this is completed, the legal documents will be submitted and registered with the Land Registry and the transfer will be finalised.
If you have any questions regarding the process for changing your home ownership, do not hesitate to contact our residential property team.
Why choose Holden Smith?
By working with Holden Smith, you will be working with a renowned residential property team comprising expert solicitors and conveyancers. Our team has been guiding clients in transferring their equity or ownership in properties since 2019, helping hundreds complete the process.
We pride ourselves on our communication with our clients, all our residential property clients will gain access to our app, which will provide them with 25/7 updates on the progress of their case. Our app also lets clients upload documents directly from their phones, so they can focus on other tasks and leave the rest to us.
We can assist clients across England and Wales.
Frequently Asked Questions
How long does it take to transfer ownership?
Like most legal cases, the time it takes transferring a property depends on the case's complexity. Typically, this process takes between four and eight weeks. However, as previously mentioned, this can take longer if a mortgage is involved and the mortgage lender involved.
Is stamp duty applied?
Stamp Duty Land Tax (SDLT) may need to be paid as part of the transfer. This depends on whether the amount transferred exceeds the allowed threshold (currently £40,000) and the circumstances surrounding the transfer.
Circumstances where SDLT does not have to be paid included:
If you are divorcing and transferring the mortgage to one person (subject to mortgage lender approval).
If you do not have a mortgage.
If a property with no mortgage is being gifted from a parent to a child.
If the property is split equally between two parties.
Circumstances where SDLT does have to be paid include:
If a gifted property from a parent to a child has a mortgage, you may have to pay SDLT on the percentage of the mortgage that you will own.
If a partner or spouse is buying part of the equity and the mortgage. If the spouse or partner is currently paying towards the mortgage, the SDLT may be half the outstanding mortgage amount.
Do both parties need legal representation?
Representation is not always needed for both parties during a transfer of equity however, this depends on the circumstances as to why the transfer is taking place. It is a legal requirement for a part to have separate representation if they are separating or going through a divorce, or if they are receiving a deed as part of the transfer.
We always recommend that both parties have separate legal representation to avoid complications with the transfer.
It is also heavily recommended that both parties receive separate tax advice from a qualified tax professional. A tax professional will be able to advise you on any tax liabilities including Inheritance Tax (IHT) or capital gains tax (CGT) complications that may arise.
Are there any additional fees?
When completing the application form (known as a TR1 form) to HM Land Registry a land registry fee will be required to be paid. The fee itself is based on a scale set out by HM Land Registry. Your solicitor will advise you on the fee but can you also see the fees on the government website.