A beginner’s guide to transferring equity

Transferring equity is when you modify the title deeds of a property to add or remove an owner. It is an important legal process that is usually relatively simple, especially when compared to selling a house, but there are still potential complications to be aware of.

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Why would you want to transfer equity?

The most common reason for transferring equity is if you own the property as a couple and you separate. Conversely, if you are the sole owner but have embarked on a new serious relationship, you may want to add your new partner to the deeds. Old partners are sometimes removed and new ones added at the same time. In other cases, equity transfer can be a tax decision.

How does the transfer of equity process work?

First, you need to review the property’s title, which is held by HM Land Registry. You may need to establish the current market value of the house to assess the worth of each share. Once this is done, documents can be signed in the presence of witnesses. Mortgage lenders, such as banks and building societies, need to be informed and give consent. Finally, the deed can be returned to HM Land Registry.

When do you need to instruct a transfer of equity solicitor?

A transfer of equity solicitor, such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor, is important. The solicitor can ensure all documents are properly prepared and all legal requirements met. They can also manage potential complications, such as when the parties disagree or a mortgage needs to be navigated. They may also be able to advise you on tax implications, particularly around stamp duty.

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Equity transfer is not difficult unless there are mortgages or disagreements involved; however, using an expert solicitor is the best way to ensure you meet all the legal requirements.

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