What is a Transfer of Equity?

When the legal ownership of a property is transferred, this is known as a transfer of equity. This process allows property owners to add their names onto the title of the property or remove themselves from the title of the property without selling the property itself.

Equity in this particular context refers to the portion of a property that you own outright. So this would mean the value of a property minus any mortgages or loans on the title of the property.

There are various situations where one would want to transfer the legal ownership of a property, for example:

• A Divorce e.g. Court Order, financial settlement agreement
• Gifting a property to your children or other family members
• Adding a new partner onto the title of your property
• To change shares owned by joint owners or buy out a co-owner’s share
• Remove an ex-partner

A transfer of equity is generally less complex than a purchase because one of the legal owners of the property remains the same, however complications with mortgage lenders, disputes during the breakdown of relationships or leasehold property requirements can delay the process.

Please get in touch with Johnson Astills today and we would be more than happy to discuss your requirements further. Please call us at our office in Leicester on 0116 255 4855 or our office in Loughborough on 01509 610 312 and ask to speak to a member of the Property Team. Alternatively, you may prefer to email us at legal@johnsonastills.com or fill in our enquiry form.