Transfer of Equity

The transfer of equity refers to the legal process of changing the ownership of a property from one or more individuals to another individual or group. It is important to make clear that this is not a sale as at least one of the owners of the property remains the same.

You might want to arrange a transfer of equity for various reasons, including;

• Adding a partner of family member if you have married or remarried
• Removing an ex-partner if you have divorced
• Buying out the equity of a joint owner
• Transferring equity to children or other family members to reduce future inheritance tax liabilities

What is equity?

Equity is the legal term for the percentage of your property you own. That’s the property value, minus your outstanding mortgage. For example, if your home is worth £300,000 and you have £120,000 remaining on your mortgage, you have £180,000 equity.

The process is simple when no money exchanges hands and the property is mortgage-free, however in cases where there’s a mortgage involved; lender consent is necessary to transfer equity. Complex situations like divorces also involve financial transactions which we are experienced at guiding clients through.

Our services encompass acquiring title documents from the Land Registry, coordinating with lenders for mortgage compliance, verifying Stamp Duty Land Tax status, preparing financial statements, handling funds and paperwork meticulously, confirming equity changes with the Land Registry, and providing updated title copies to you.

If you’re considering an equity transfer and need expert legal advice, please contact John Munro at j.munro@laceyssolicitors.co.uk or call 01202 377839 to get started.