Transfer of Equity

The Transfer Deed

To change the names on deeds to a property a Solicitor will firstly obtain the deeds or Official copies from the Land Registry and will then begin to prepare the Transfer Deed. They will notify any third parties and assess if stamp duty is payable (some Transfers of Equity are exempt from Stamp Duty, for example if the transfer is the result of a court order). A Stamp Duty Land Tax (SDLT) form will be completed and submitted to H M Revenue & Customs and identity checks undertaken. The Transfer Deed will be signed by all parties in front of witnesses.

If transferring at market value, the transfer deed will show the price paid for the share in the property. If your transfer is a ‘transaction at an undervalue (transferring for free or at a discount on market price), for example as a family gift, between companies or to avoid losing the property through debt or insolvency, you will also need to sign a Declaration of Solvency. If the person who transfers the property becomes bankrupt within a number of years of the transfer, the law can undo it in order to protect any creditors and the property can be sold off by the Official Receiver to cover debts. You may also need insolvency insurance to cover mortgage payments; your Solicitor can arrange this for you.

Mortgages and Transfer of Equity

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.

Transfer of Equity with Dale and Co. Solicitors - Conveyancing Solicitors in Lincoln

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.

Property Conveyancing Solicitors in Lincoln UK

BUYING

• Conveyancing estimates are clear so you can plan
• Deeds are stored free for your peace of mind
• 10% discount for first time buyers

SELLING

• Power of Attorney and Will reminders