Transfer of Ownership2022-04-12T10:15:29+00:00

Transfer of Ownership

A Transfer of Ownership allows you to transfer part or all of your property to another person. This can be vital for several reasons, but most commonly it’s due to a relationship breakdown. The process allows you to legally add or remove a person from the property title deeds, leaving at least one of the original owners in place.

However, if no original owner is remaining on the title deeds, you would require our conveyancing services, as this would become a sale or a purchase rather than a Transfer of Equity, even if no money changes hands.

Moving in together?

We are often called upon to add people to the title on marriage, moving in together, or for tax planning reasons. We are also often asked to remove names from title documents where there is a relationship breakdown or the death of the owner.

Even though there may be agreement as to what needs to happen to the property, it is often difficult to know how to put this into practice. This is where Attwells are able to assist. A Transfer of Equity is often much simpler than a sale or purchase and often does not require any searches or enquiries.

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Attwells Solicitors, assist with transfer of equity and title deeds in Suffolk, Essex & London

Transfer of Ownership FAQs

How much will it cost me to change the names on my property deeds?2022-02-03T16:44:25+00:00

How much will it cost me to change the names on my property deeds? This depends on whether you have an existing mortgage or not and if the property is leasehold or freehold.

A Transfer of Ownership is required when you wish to transfer part or all of your property to another person. This can be vital for several reasons, but most commonly it’s due to a relationship breakdown. The process allows you to legally add or remove a person from the property title deeds, leaving at least one of the original owners in place.

However, if no original owner is remaining on the title deeds, you would require our conveyancing services, as this would become a sale or a purchase rather than a Transfer of Equity, even if no money changes hands.

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How much will it cost me to change the names on my property deeds and what is included in the price?

  • Drawing a Transfer Deed to transfer the ownership of the property
  • Obtaining relevant signatories
  • Dealing with your lender’s consent to the transfer (where applicable)
  • Dealing with your remortgage (where applicable)
  • Dealing with your landlord’s requirements for the transfer  (where applicable)

What is not included?

  • Tax advice
  • Anything not listed as included above

Depending on your circumstances, Stamp Duty Land Tax may be payable. This has not been included in the quote. If SDLT is due, an additional £75 + VAT will be added to your quote for completing and filing the SDLT return. Land Registry Fees are due and will be payable based upon the purchase price. The Final Search Fee will be £20 plus VAT and Title Search Fee will be £20 plus VAT for a freehold or £30 plus VAT for a leasehold. We also have an additional fee scale you may wish to refer to.

Will I have to pay Stamp Duty Land Tax (SDLT)?

Much the same as when a property is purchased from the previous owner when you transfer your property deed, SDLT needs to be considered.

We need to look at what the ‘consideration’ for the transfer is. The consideration is anything of monetary value that is provided to the owner of the property to effect that transfer. For example, this may be cash, the repayment of the mortgage, credit cards, etc.

SDLT is calculated on the total consideration for the transfer.

Will I have to pay Stamp Duty Land Tax on transferring my property deeds?2022-02-02T11:56:13+00:00

Will I have to pay Stamp Duty Land Tax on transferring my property deeds? It’s much the same as when a property is purchased from the previous owner when you transfer your property deed, SDLT needs to be considered.

We need to look at what the ‘consideration’ for the transfer is. The consideration is anything of monetary value that is provided to the owner of the property to effect that transfer. For example, this may be cash, the repayment of the mortgage, credit cards, etc.

SDLT is calculated on the total consideration for the transfer.

We then have to work out if the standard SDLT rates apply or if the 3% surcharge may apply. This will depend on whether the person or people staying on the title to the property also own any other property.

If the consideration for the transfer is over £40,000 but no SDLT is payable, HMRC still needs to be notified of the transaction. This is something Attwells would take care of for you.

Will I have to pay Stamp Duty Land Tax on transferring my property deeds? – Here is an example

To give you an idea of how this works, we have set out an example below;

Ms. A and Mr. B have lived together for 15 years although they are not married or in a civil partnership. They are separating and wish to deal with the division of their home. The property has been valued at £300,000 and they have an outstanding mortgage of £50,000 on the property.

Ms. A has decided to stay in the property and buy Mr. B out of the property.

The equity in the property (the value less the outstanding debt) is £250,000, therefore Ms. A will pay Mr. B half of this, i.e., £125,000.

Ms. A will be getting the consent of the existing lender to remove Mr. B from his obligations under the mortgage and therefore she will take over Mr. B’s half of the outstanding mortgage, i.e., £25,000.

The consideration Ms. A is paying is therefore the cash that is changing hands (£125,000) plus half of the existing mortgage debt (£25,000,) totalling £150,000.

The transfer of title is completed on the 30th of June 2019 and based on the rates for SDLT that applied on that date, Ms. A will be liable for SDLT of £500.  This assumes that she does not own any other property and is not subject to higher rates of SDLT. 

Transferring my Property Deeds when I have a mortgage2022-02-02T12:07:16+00:00

Transferring my Property Deeds When I have a mortgage all depends on what you want to do about the mortgage.

  • Do you want to repay it in full and have no further mortgage obligations?
  • Do you want to keep the existing mortgage and have someone removed from the mortgage or added to it?
  • Do you want to take out a new mortgage in the new owner’s name?

Transferring my Property Deeds when you have no ongoing mortgage

If you just want to repay the existing mortgage, we will need to have the details of your existing mortgage account with your lender so we can arrange for the mortgage to be paid off as part of the transfer.

Keep your existing mortgage

If someone is being removed from the title, the lender will need to satisfy themselves that those remaining on the title documents can afford the mortgage repayments.

If someone is being added to the title, they will need to assume an equal responsibility to the mortgage as those already on the title (those that already own the property). The lender is likely to want to ascertain whether the incoming person can equally afford the mortgage repayments – just like if they were obtaining a new mortgage.

In both instances, the lender would need to provide their consent in writing to the addition or removal of someone from the ownership of the property. The consent can be either the lender’s signature on the transfer deed or a letter confirming their consent.  This will depend on the specific lender.

Getting a new mortgage

If the current mortgage is being paid off and you are taking a new mortgage, this is known as a re-mortgage.

This is essentially a second element to the transaction.

We will need to report to the new owners on the new mortgage that is being taken out and you will all need to sign new mortgage documents.  These will need to be returned before the new mortgage funds can be ordered and the change in name can take place.

What is the process to change the name on a property deed?2022-02-02T12:19:33+00:00

What is the process to change the name on a property deed?

1) Title documents are downloaded from the Land Registry

What are we looking for?

  • Is there a mortgage?
  • Who are the current registered owners?
  • If more than one person, how do they own the property?
  • Re there any other restrictions that would prevent the names to be changed?

2) Draft the deed (transfer deed) to add or remove the relevant people.

All parties to the deed need to sign it.

If anyone is not represented by a solicitor or conveyancer they will need to complete a form to verify their identity.

3) If you own a leasehold property, we most likely will need to contact the freeholder to see what their requirements are for the change of ownership and, if there is to be a change of mortgage lender, to check that insurance is in place and any ground rent and service charges payable are paid up to date.

4) If there is a mortgage on the title, we will either need the lender to consent to the transfer or you will need to get a new mortgage offer in the names of the new owners and we will need this in order to complete the change of names.

If there is no mortgage on the title, we can date the deed (this will be the date that the ownership of the property changes) and get this registered for you with Land Registry.

What is the process to change the name on a property deed – This process is known as a Transfer of Ownership.

A Transfer of Ownership allows you to transfer part or all of your property to another person. This can be vital for several reasons, but most commonly it’s due to a relationship breakdown. The process allows you to legally add or remove a person from the property title deeds, leaving at least one of the original owners in place.

However, if no original owner is remaining on the title deeds, you would require our conveyancing services, as this would become a sale or a purchase rather than a Transfer of Equity, even if no money changes hands.

What is included in the price?

  • Drawing a Transfer Deed to transfer the ownership of the property

  • Obtaining relevant signatories

  • Dealing with your lender’s consent to the transfer (where applicable)

  • Dealing with your remortgage (where applicable)

  • Dealing with your landlord’s requirements for the transfer  (where applicable)

What is not included?

  • Tax advice

  • Anything not listed as included above

Receive a Transfer of Ownership quote

Depending on your circumstances, Stamp Duty Land Tax may be payable. This has not been included in the quote. If SDLT is due, an additional £75 + VAT will be added to your quote for completing and filing the SDLT return. Land Registry Fees are due and will be payable based upon the purchase price. The Final Search Fee will be £20 plus VAT and Title Search Fee will be £20 plus VAT for a freehold or £30 plus VAT for a leasehold. We also have an additional fee scale you may wish to refer to.

What you can expect when instructing Attwells Solicitors

Transfer of Ownership Articles

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