There are many reasons someone may wish to transfer the equity of a property. Some examples include: change in cohabitation arrangements (i.e. in the case of divorce), property being gifted, transfer of property between family members, or when a Trust is formed. If a mortgage will continue after the transfer, permission must be obtained from the mortgage lender before the transfer can go ahead.
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.
Contact us today for more information.
Last Updated: Thursday 25th April 2019
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