Transfer of Equity Solicitors

Transfer of equity is a crucial legal process that allows property owners to:

 Transfer of Equity Solicitors: Help Whatever Your Circumstances

A transfer of equity changes the legal ownership of a property without necessarily involving a sale on the open market. For example, an existing owner may be removed from the title, or another person may be added as a registered owner.

Starck Uberoi Solicitors assists with transfers of equity in a wide range of circumstances.

Relationship Changes

Where a relationship has ended, the firm can assist with transferring the property into one party’s sole name or otherwise implementing the parties’ agreed arrangements. Separate legal representation may be required where the parties have different interests.

Adding a Partner or Spouse

The firm can assist with adding a spouse, civil partner or other person to the registered title, subject to any mortgage lender’s requirements.

Buying Out a Joint Owner

Where a property is jointly owned, the firm can deal with the legal work required for one owner to acquire another owner’s interest.

Tax and Estate Planning

A transfer of equity may form part of wider tax or estate-planning arrangements, including the gift of a share in a property to a family member. The firm can advise on the conveyancing aspects of the transfer and, where specialist tax advice is required, can refer clients to an appropriate tax adviser.

A Wide Range of Transfer of Equity Matters

The firm acts in transfer of equity matters involving:

• mortgaged and unmortgaged properties;
• freehold and leasehold properties;
• shared ownership properties;
• new-build properties;
• payments between existing and incoming owners; and
• declarations of trust setting out the parties’ beneficial interests.

The legal and tax consequences will depend on the circumstances of each transaction. Relevant considerations may include Stamp Duty Land Tax, Capital Gains Tax, inheritance tax, leasehold restrictions and mortgage lender requirements.

Stamp Duty Land Tax on a Transfer of Equity

Stamp Duty Land Tax (SDLT) may be payable on a transfer of equity involving property in England or Northern Ireland. Different property transaction taxes apply in Wales and Scotland.

Whether SDLT is payable depends on the consideration given for the transfer. “Consideration” can include:

• money paid to an outgoing owner; and
• responsibility assumed for some or all of an existing mortgage.

Reliefs or exemptions may apply in certain circumstances, including some transfers between spouses or civil partners and transfers made following separation or divorce. The position will depend on the facts of the transaction.

Where a proposed transfer may have Capital Gains Tax, inheritance tax or other tax consequences, specialist tax advice may also be required.

The Transfer of Equity Conveyancing Process

The precise process will depend on whether the property is mortgaged and whether any owners are being added to or removed from the title.

1. Obtaining the Mortgage Lender’s Consent

If the property is subject to a mortgage, the lender’s consent will usually be required before the transfer can proceed. The lender may need to confirm that any incoming or remaining owner satisfies its lending criteria.

The lender may:

• consent to the transfer under the existing mortgage;
• require the parties to enter into a new mortgage deed;
• require the mortgage to be redeemed and replaced; or
• refuse consent to the proposed change of ownership.

A transfer should not proceed in breach of the existing mortgage conditions.

2. Reviewing the Title and the Lender’s Requirements

The registered title, mortgage conditions and any applicable restrictions will be reviewed. For leasehold properties, the lease may also require the landlord’s or management company’s consent, notice or certificate.

3. Preparing the Legal Documents

The necessary documents will be prepared, which may include:

• a transfer deed;
• a mortgage deed;
• a declaration of trust;
• Stamp Duty Land Tax documentation; and
• Land Registry application forms.

The transfer deed records the parties’ details, the property being transferred, any payment or other consideration and any relevant declarations concerning ownership.

4. Signing and Completion

The transfer deed and any mortgage deed must be signed in accordance with the applicable execution requirements. Individual signatures will generally need to be witnessed by an independent adult who is physically present when the document is signed. Any additional requirements imposed by the lender must also be followed.

On completion, any agreed funds will be transferred and the transaction will take effect in accordance with the completion arrangements.

5. Stamp Duty Land Tax and Land Registry Application

Where required, the relevant SDLT return will be submitted to HM Revenue & Customs. An application will then be made to HM Land Registry to register the change of ownership and any new mortgage.

Once the application has been completed, HM Land Registry will issue an updated official copy of the registered title. The lender will be notified where required.

Simultaneous Transfer of Equity and Remortgage

A transfer of equity can often be completed at the same time as a remortgage. This may be necessary where:

• the existing lender will not consent to the proposed transfer;
• an owner is being released from liability under the current mortgage;
• additional borrowing is required to fund a payment to an outgoing owner; or
• the owners wish to move to a different mortgage product or lender.

Starck Uberoi Solicitors is a member of the conveyancing panels of a wide range of mortgage lenders and can act in many transactions involving a simultaneous remortgage and transfer of equity.

For further information, please visit the firm’s Remortgage Solicitors page.

Clear and Competitive Fees – Instant Quotes Available 24/7

Clients receive a clear breakdown of the firm’s legal fees and anticipated disbursements before instructions are accepted. Additional charges may apply if the transaction becomes more complex or further work is required, but any changes will be explained where applicable.

To obtain an instant transfer of equity quote, please use the link below and provide the requested property and transaction details.

Obtain an Instant Quote

Mortgage Brokers

Starck Uberoi Solicitors works with mortgage brokers who have experience in transfer of equity and remortgage transactions. Where appropriate, the firm can introduce clients to a broker who may be able to assist.

For further information, please contact:

Telephone: 0208 840 6640
Email: solicitor@starckuberoi.co.uk