Transfer of equity describes the legal process used to add or remove someone from the title deeds of the property. However, this does not mean the property is sold. At least one of the original owners remains the same as before and some reasons for transferring equity include:

  • Tax purposes. Sometimes home owners transfer equity to their children to be more tax efficient.
  • Relationship breakups. If you are separating from your partner your assets will be divided up between you. This includes the home, which is often the most significant one.
  • A new relationship. You may have bought a house and later entered a relationship. A transfer of equity would then add your new partner to the deeds.
  • Buying out the equity of a joint owner. If you bought a property with friends and family then you may want to buy them out.

What are the stages of Transfer of Equity?

You should seek legal advice when you wish to add or remove names on the deeds of a property. At Attwell Solicitor’s we have a dedicated specialist Property Transfer Team which can assist you. However, in the case of separation it is likely that more than one solicitor will be involved as independent legal advice will be necessary for both parties.

The key stages involved are:

  • Review the title deeds.
  • Prepare the title deed documents.
  • Meet with the solicitor to sign the documents in the presence of a witness.
  • Notify mortgage or secured lenders, banks or building societies if they are involved. They must give their written consent.
  • Register the deed transfer at the Land Registry.

Implications of Stamp Duty Tax

To transfer your property into joint names after something like marriage, you may also be charged stamp duty. This happens when the property has a mortgage and anything above the threshold will be subject to stamp duty tax. See Gov.Uk’s example.

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