Transfer of Equity Solicitors
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 based on the market value of the property or it may be as part of a court order relating to a divorce or separation. Whether the transfer is between family members, a former partner or other owners of the property, the process can be complex- a transfer of equity conveyancing solicitor will offer expert legal advice and service throughout the transaction.
You may need to change the legal ownership of a property, whether to add or remove a name from the title, or to change the ownership entirely. Whatever the context, it’s important to have a property solicitor there to offer the right legal advice and support. This will protect everyone involved in the property transfer especially where you have a mortgage on the property.
How can our conveyancing solicitors help in the Transfer of Equity process?
At Eric Robinson Solicitors our specialist transfer of equity solicitors can offer expert advice on Transfer of Equity in various different contexts.
Our property solicitors can assist you in a number of ways. Our experience allows us to communicate effectively with any relevant third party such as mortgage lenders and we are able to offer advice on when you are required to pay stamp duty land tax or capital gains tax whilst transferring equity. We can also update the title deeds at the land registry, seek consent from your mortgage lender and draft the necessary transfer deed amongst many other services.
Whether you are getting married, divorced or separating, want to gift a property to a loved one, are in the process of creating a trust, need help changing the ownership of a property or wish to remove names from ownership of the property, Eric Robinson Solicitors have an expert panel of conveyancing solicitors who can make this happen as quickly and simply as possible.
What about stamp duty land tax and your mortgage lender?
Many clients ask us how long does a transfer of equity take? At Eric Robinson Solicitors we always advise that the process will be dependent upon the speed of each of the relevant parties. For example, if one family member or person requires a new mortgage offer then the equity transfer cannot complete until that lender has issued all of their paper work. Equally, matters can occasionally be slower where people are separating or transferring equity against the backdrop of court proceedings, or where there is a dispute over property value or whether a sale should occur. The speed at which a transfer progresses is not usually affected by whether the home is freehold leasehold.
At Eric Robinson Solicitors we use the latest paperless technology to provide a bespoke VAT inclusive conveyancing quote for our transfer of equity costs and once we are in receipt of your instructions we will ensure that we keep you fully informed of progress throughout the entire process. If you would like to speak to one of our team about how to transfer equity, please don’t hesitate to call us today or please visit our website. We are happy to answer any queries you may have regarding our equity costs, consideration of any existing mortgage and mortgage payments and other helpful tips can be found throughout our site.
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.
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