Transfer of equity refers to the legal process of adding or removing someone from the title deeds of a property (as an owner). There are many reasons for doing this, including: removing an ex-spouse or partner; adding a new spouse or partner; adding a child or sibling; changing the share percentage of co-owners or buying out a co-owner’s share; or for tax purposes. It can also be used to assist with estate planning to reduce inheritance tax. For more information regarding estate planning contact our private client department.
A transfer of equity may include ‘consideration’, which can either be a cash payment or taking on a share of the mortgage, or both.
Transfers of equity need an experienced solicitor to guide you through the process as it is not necessarily as straightforward as it appears. If there is an existing mortgage, you will need to obtain the lender’s consent to the transaction. For this reason, a transfer of equity is commonly linked to a remortgage.
We will also need to deal with any restrictions or consent required depending on what it says on the register of title. Depending on the circumstances of the trustor, stamp duty may also need to be paid.
Our experienced residential conveyancing team can help you negotiate the process and any challenges that arise, as well as providing advice tailored to your individual circumstances.
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