The difference between the value of a property and the amount left outstanding on its mortgage is known as equity.
Equity can be transferred when an owner (or joint owner) of land or property wishes to transfer their ownership to someone else, for example through divorce proceedings or as a gift. It is advisable that a Solicitor is instructed for a Transfer of Equity to ensure that any liabilities are disclosed.
Contact the Dale and Co. Property Conveyancing team for a Transfer of Equity quote.
If a mortgage will continue after the transfer, permission must be obtained from the lender.
This can be a good time to reassess your mortgage and check that you have the best deal. Your lender may require you to attend an interview or write a letter to explain the reason for the transfer. They may need proof that the amended owner(s) can afford to pay the mortgage and can issue conditions to the change, which your Solicitor will ensure are carried out. A mortgage lender has absolute discretion to approve or refuse a Transfer of Equity request.