Transfers of Equity
A Transfer of Equity is where a co-owner transfers their share in a property to another co-owner. The interest can be transferred for a sum of money or it may be as part of an agreement relating to a divorce or separation.
If you need to change the legal ownership of a property, whether to add or remove someone’s name from the title or change the ownership entirely, it’s important to have the right legal advice and support to protect everyone involved. At Eric Robinson Solicitors our expert lawyers have extensive experience advising on Transfers of Equity in a multitude of different contexts.
Whether you are getting married, divorced or separating, want to gift a property to a loved one, are creating a trust, or need help changing the ownership of a property for any other reason, Eric Robinson Solicitors can make this happen as quickly and simply as possible.
Our lawyers will use the latest paperless technology to provide a bespoke quote for the cost of our services, to advance your matter from the receipt of your instructions, and to keep you fully informed throughout the entire transfer process.
What is a transfer of equity?
A transfer of equity will occur where a sole owner of a property adds one or more people to the ownership, or where an existing owner of the property sells their share to those owners who will remain.
How complicated is a transfer of equity?
The legal process that applies is relatively straightforward. The main issues to have a mind are whether the proposed transfer of equity is dependent upon a re-mortgage, or whether one of the parties is required to raise monies to purchase the other parties share.
Do you have to re-mortgage when undertaking a transfer of equity?
It sometimes necessary for a re-mortgage to happen alongside a transfer of equity but it is not an absolute rule. A re-mortgage can sometimes be said to be more likely where one co-owner is acquiring the other co-owner’s share so that the acquiring party becomes the sole owner of the property. In these circumstances any existing mortgage lender would need to give their consent to the mortgage being transferred into the sole name of the retaining party. The lender’s consent would be based on their normal lending principles and the retaining party will be required to demonstrate that they can meet the lender’s affordability criteria.
Can my partner buy into my house?
If this is something that you are willing to do then you are at liberty to make your partner a joint owner. Adding your partner to the property’s title deeds will require the consent of your mortgage provider and it is likely that your mortgage company will insist that your partner becomes a party to the mortgage. You would be wise to take legal advice before making your partner a joint owner because you may well need a property ownership trust drawn up if you will be owning the property in unequal shares. It would also be wise to consider entering into a co-habitation agreement.
Can I remove my ex-partner from the title deeds to our jointly owned property?
This is the sort of scenario that is covered by a transfer of equity. If it has been agreed that you will be acquiring your ex-partner’s share in the property that this agreement can be formalised by reason of a transfer of equity. The transfer will probably be conditional on your lender agreeing for the mortgage to be transferred into your sole and you will no doubt need to pay your ex-partner the value of their equity. In the event that you existing mortgage lender is not willing to transfer the mortgage into your sole name you will need to find a new lender and this will require you to complete a re-mortgage alongside the transfer in equity.
Why is a transfer of equity important if I am no longer residing at a jointly owned property?
Under the terms of a jointly held mortgage each party will remain liable to pay the monthly payments until the lender has agreed to release the party who has left the property. This means that even if you have left a property you remain fully liable for the mortgage and you can be pursued for any missed payments and arrears. By completing a transfer of equity and a simultaneous re-mortgage you are ensuring that you are released from your former obligations.
Can I use a transfer of equity to change the ownership shares of co-owners?
The transfer of equity process can be used to change the ownership shares of the co-owners of jointly owned property.
Can’t see what you’re looking for?
Send us your questions via the contact form and we will be happy to assist.
Instant online Transfer of Equity quote available!
Your message has been received. We will get back to you shortly.Send another enquiry
Residential Conveyancing Department