Property ownership does not always remain static. Life events, such as marriage, divorce, and financial planning, often necessitate a change in who officially owns a residential property. This legal process is known as a transfer of equity.
At Johnson Astills, our experienced transfer of equity solicitors specialise in guiding clients through the intricacies of transferring equity in residential properties.
What Is Conveyancing Transfer Of Equity?
A transfer of equity refers to the legal process of adding or removing someone from the title deeds of a property without selling it. At least one of the original registered owners must remain the same.
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When Might You Need To Transfer Equity In A Property?
People decide to transfer equity in a property for a variety of different reasons. Some of the most common include the following:
Adding A Spouse Or Civil Partner
When a couple gets married or enters into a civil partnership, one party may wish to add their partner’s name to the title deeds, ensuring that they both legally own the family home. This provides both parties with a legal interest in the property.
Adding A Cohabitee
Unmarried couples do not enjoy the same legal protection as those who are married or in a civil partnership. When a couple moves in together in a property owned by one partner in their sole name, a transfer of equity can protect the rights of the non-owning partner in the event of a relationship breakdown.
Removing A Spouse Or Civil Partner
Separating couples need to decide how to split their joint assets. Sometimes, they agree that ownership of the family home should be transferred into one of their sole names. They might do so by effecting a transfer of equity.
Inheritance And Estate Planning
A property owner might transfer a share of their property to a child or relative as part of tax planning or to pass on wealth.
Financial Reasons
Sometimes, a transfer of equity is required to facilitate a re-mortgage or secure a better deal. For example, removing a joint owner with a negative credit history can boost the chances of a lender approving a mortgage application.
How Can Our Transfer Of Equity Solicitors Help?
Transfer of equity solicitors manage the entire process of transferring equity in a property. A few examples of the tasks our expert team routinely undertakes include the following:
Making Mortgage Lender Applications
This is typically the most time-consuming phase. Our transfer of equity solicitors will contact the mortgage lender to request their consent to the transfer, providing them with the necessary documentation and information about the parties involved.
Drafting Transfer Deeds
Once the lender’s consent is confirmed, our transfer of equity solicitors will draft the Transfer Deed. This deed legally records the transfer, specifies the names of the parties, and details the new ownership structure.
Arranging For Signature
All parties must sign the Transfer Deed in the presence of an independent witness. Failing to comply with the legal requirements relating to execution can make the transfer of equity ineffective.
Why Do You Need Transfer Of Equity Solicitors?
While a transfer of equity may seem like a straightforward process, taking expert legal advice is crucial, since the consequences of getting it wrong can be severe. Just some examples of the potential ramifications of failing to navigate the process properly include the following:
- Financial Liabilities. For example, an outgoing owner who fails to secure a proper release from the mortgage remains jointly and severally liable for the debt.
- Tax Implications. Miscalculating Stamp Duty Land Tax (SDLT) or overlooking Capital Gains Tax implications can lead to fines and unexpected tax liabilities.
- Future Disputes. Without clear documentation in place, future disagreements about sale proceeds may arise. These disputes can be hard fought, difficult to resolve, and expensive, particularly for unmarried couples.
Your transfer of equity solicitors act as your safeguard, ensuring that the transfer is not only carried out correctly, but also that your interests are protected, and the choices you make are right for you.
Where Can I Find Transfer Of Equity Solicitors Near Me?
At Johnson Astills, our transfer of equity solicitors specialise in this niche area of law. We combine a welcoming, local approach with cutting-edge technology, ensuring our clients benefit from an efficient yet personal service.
We are committed to keeping our costs as low as possible, and to adding real value to our clients’ matters. We will provide you with a quote before we start work on your transfer, and update you regularly on the position with regard to legal fees.
Please call us free now on 0800 059 0600 or complete a Free Online Enquiry and a member of the team will get back to you soon.
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