Transfer of equity refers to a change in the ownership of a property, either by transferring an interest in the property from a sole name into joint names or from joint names into a sole name. Reasons for transfer of equity include because you are in a relationship now and want to own your property jointly with your partner or because you are separating and will be owning a property in your name only.
At David W Harris & Co, our specialist transfer of equity solicitors can advise you of the implications of a transfer of equity and carry out the legal work on your behalf. If you have a mortgage, we will liaise with your lender as necessary to secure their agreement to the transaction. Similarly, if you are tying in a remortgage, we can deal with this alongside the transfer.
Our property lawyers have extensive experience in dealing with the transfer of equity process, to include a transfer subject to a mortgage. We have the understanding to deal effectively with any transfer of equity problems and we always work to complete matters promptly and without avoidable delay.
Our transfer of equity services include:
- Transfer of equity advice
- Transfer of equity with mortgage
- Drafting the transfer document and completing the transfer
Contact our transfer of equity solicitors in South Wales
It is important to fully understand the implications of a transfer of equity and to ensure that your rights and interests are adequately protected. Our property lawyers can provide transfer of equity advice and make sure that you are happy to go ahead with the transfer. If you ring us, we will also be happy to provide a transfer of equity quote for all of the costs involved.
To speak to one of our transfer of equity solicitors in South Wales, you can call one of our offices in Pontypridd, Swansea and Talbot Green. Alternatively, we have an easy-to-use contact form.
Our transfer of equity services
Advice on transferring the equity in a property
Whether a property is being transferred into your sole name or into joint names, there are important issues to understand and choices to be made. For example, if you intend to own a property jointly with someone else, you can hold it in two different ways. You have the option of protecting the money that you have put in by owning a larger share than the other party, where appropriate.
We will explain how this works and make sure that you have the right type of ownership for your needs. We can also assist you with related issues, such as making a Will.
If you are transferring a property into your sole name, we can also provide advice in respect of this, ensuring your interests are protected.
If you have been given a transfer to sign by your co-owner’s solicitor, we can advise you on your rights and check that the transfer is fair and reasonable.
Representing you and your lender in a transfer of equity
If the property is mortgaged, you will need your lender’s permission for a transfer to take place. Alternatively, if you are remortgaging at the same time, you will be issued with a new mortgage offer and your existing loan will need to be repaid. The new lender will need us to carry out the same due diligence work that we would do if you were buying the property as they will want reassurance that the property is good security.
Drafting and completing the transfer
We can draft the transfer of equity form to be signed by you and any other parties. Once this has been done, we will arrange for registration of the transfer at the Land Registry so that the new ownership is properly documented.
What is a transfer of equity?
A transfer of equity occurs when someone is added or removed from the ownership of a property. Equity refers to the amount of the property that is owned outright. For example, if you own a property worth £250,000 with someone with each of you owning 50%, and there is a mortgage of £150,000, the equity in the property is £100,000. You and the other owner will have equity of £50,000 each in this case. One person’s equity could be transferred to the other in a transfer of equity.
If you are the person buying out the other owner, you might either pay them £50,000 from your savings or alternatively remortgage to obtain the funds.
What is required for a transfer of equity?
You will need to take legal advice before starting a transfer of equity to check that your interests are protected and that the transfer is the best option for your needs. You will also need a solicitor to represent any lender in the transaction.
If you are transferring a property from joint names into your sole name, the other individual will also usually have independent legal representation.
What is the process for a transfer of equity?
The transfer of equity procedure starts with obtaining the title deeds to the property along with an official copy of the legal title, which is available from the Land Registry. If you ask us to deal with a transfer of equity on your behalf, we will draft the transfer document once we have the title deeds and liaise with the solicitors for the other owner where necessary. We will also let you know what the transfer of equity costs are at the outset.
If you are remortgaging at the same time, we will need to carry out searches and make enquiries to satisfy the new lender that the property is legally sound.
We will prepare a statement showing the amount due to you or to be paid to a co-owner and arrange for completion to take place.
Following completion, we will pay the Stamp Duty Land (SDLT) in England or Land Transaction Tax (in Wales), if any is due, and arrange for the change of ownership to be registered with the Land Registry. In the vast majority of cases, whether there is a mortgage or not, a tax return is needed and often there is tax payable. We will guide you as to the tax implications of the transfer once we are made fully aware of the circumstances.
How long does a transfer of equity take?
A transfer of equity can be carried out within three or four weeks if no lender is involved and if the other party is ready to proceed and has a solicitor in place.
If you will be remortgaging or need the lender’s consent to the transfer, it will depend on the speed at which the lender can issue the mortgage offer or approve the transfer. If your lender needs searches to be carried out, then we might also have to wait for a local authority response. In some cases, the lender may be prepared to accept indemnity insurance instead of searches, which can speed up a transaction. However, where a new mortgage is involved, the transaction is likely to take at least two months.
Contact our transfer of equity solicitors in South Wales
If you are considering a transfer of equity, we would be happy to help. If you ring us, we can answer your initial questions and let you know our solicitors’ fees for transfer of equity transactions.
To speak to one of our transfer of equity solicitors in South Wales you can call one of our offices in Pontypridd, Swansea and Talbot Green. Alternatively, we have an easy-to-use contact form.