Transfer of Equity Solicitors

Transfer of equity is the process of adding or removing someone from the title deeds of a property, basically, removing or adding them as the owner of that property.

The transfer of equity is differentiated from the sale because at least one of the property's original owners will remain the same. However, the complete list of owners has changed.

Reasons for a Transfer of Equity

Several reasons might necessitate a transfer of equity. Some of the more common ones include:

Divorce or separation

Divorced or separated couples who own property can decide what to do with the asset. Some couples may choose to remain joint owners and sell the property, while others may remove one part from ownership, allowing the other party to keep the house to live in. This option is more common when there are children involved.

A new relationship

If you have started a new relationship, you might want to consider adding your new partner to the house's deeds through a transfer of equity.

Resolving joint ownership

Another scenario that might require a transfer of equity is when people pool their resources to buy property. At some point, one owner may wish to buy out the others, which would require a transfer of equity.

Tax efficiency

Transferring equity to children or other family members can be an effective way to increase tax efficiency. The property can be treated as a gift, minimising the tax owed when transferring it. If you're considering transferring equity for tax reasons, we highly recommend talking to one of our independent legal advisers specialising in this area before taking action.

Transferring equity can be a simple process when the property is wholly owned by the parties listed on the deeds and when the parties involved agree. However, factors such as mortgages, taxes, and parties in disagreement can make the process extremely complex. Ultimately, each transfer of equity is unique and should be transferred as such.

How Can a Transfer of Equity Solicitor Help?

Even with most factors aligned, the transfer of equity can still be daunting and time-consuming. As with other legal documentation, you first need independent legal advice to determine whether such an act is in your best interest and will serve the intended purpose.

If you have a mortgage on the property, you must obtain the lender's consent. You may also have to pay SDLT; obtaining expert legal advice from a qualified solicitor is highly recommended from the beginning of the process.

We can provide you with specialist legal advice on various aspects of property law, not just the transfer of equity. Our solicitors can help you understand the procedure, the paperwork required, and any costs you should be aware of during the undertaking.

With access to an extremely experienced team, fast turnaround, and same-day booking, you can get the legal advice you need quickly and conveniently. Our services are available through various platforms, including online via video conferencing, for efficiency and convenience.