Transfer of Equity – The Process
July 7, 2022
A Transfer of Equity is where you change the ownership status of your property. It might be something you need to do if you have recently got married or divorced and want to add or remove a partner. Equally, you may have bought your property with family or friends and need a transfer of equity if one party wants to buy the other owners out.
What is equity?
Put simply, equity is the value of the property you own. If you have a mortgage, this does not include the value of the money you have borrowed. To work out the equity, you need to deduct the amount you still owe on your mortgage from the total value of your property – i.e. if your home is valued at £250,000 and you have a £100,000 mortgage, the total equity is £150,000.
While the transfer of equity process is usually straightforward, it is important to instruct a conveyancer to handle the matter, to ensure the changes are processed correctly and avoid any disputes or problems in the future. The process includes the following stages:
1. Obtaining a copy of your title to the property.
To begin the process, you will need to obtain an official copy of the title deeds. Your conveyancer will do this for you and check if there are any mortgages on the property or restrictions which would complicate matters.
2. Preparing the transfer documents.
Your conveyancer will prepare the transfer document, so it is ready to be signed.
3. Notifying any third parties.
If there are any mortgages on the property, your conveyancer will write to your mortgage lender to obtain their written consent to go ahead with the transfer. They may wish to change the terms of the mortgage before agreeing.
If your mortgage lender does not agree the transfer, you will need to pay the remaining mortgage amount before going ahead. This can be done by either cash payment or obtaining a new mortgage from a different lender.
4. Signing the deeds.
Once consent has been obtained, or if there are no mortgages on the property, the new and existing owners will sign the transfer deed in the presence of a witness.
5. Informing the Land Registry.
Your conveyancer will register the transfer deed and any mortgage with the Land Registry.
Every transfer of equity process is different, which means the time it takes can vary. A simple transfer can be completed in around four to six weeks, but a transfer that involves a mortgage can take longer.
Our skilled team of conveyancers have many years’ experience of providing a high quality, efficient service to clients in London and the South East. Find out more about our services, or call us on 020 8313 1300 to discuss your requirements and to obtain an estimate of our fees.
The information contained in this article is intended for general guidance only. It provides useful information but it is not a substitute for obtaining legal advice as the articles do not take into account specific circumstances. So do please Contact US for legal advice on the issues raised.