When May I Need to Arrange a Transfer of Equity?
Some common examples include:

• Removing an ex-partner from the title deeds if you have separated.
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• Adding a partner to your title deeds.
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• Changing the percentage of shares owned in a jointly owned property.
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• The transfer of a property between family members.
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• The property is being gifted.
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• A Court Order requesting for the transfer of aproperty.
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• What Does the Equity in Your Home Mean?

Equity is the value of how much of your property you own. For example, if your house is worth £350,000 and your mortgage balance is £50,000, you have £300,000 equity in the property.

What Does the Transfer of Equity Process Involve?
The first step is for your Conveyancing Solicitors to review the title deeds for the property. It’s necessary to check whether there are any mortgages on the property or whether there are any restrictions that may affect the property.

What Happens to Any Current Mortgages on the Property?
If the property is subject to a mortgage, the consent of the mortgage lender will be required to proceed with the transfer. If a person is being removed from the title deeds, the mortgage lender will need to be satisfied that the remaining owners are able to keep up with the mortgage payments before providing their consent to proceed with the transfer. Our Conveyancing Solicitors can assist with any queries you may have regarding current mortgages on your property.

DoI Need to Pay Stamp Duty Land Tax?
It’s important when budgeting for a Transfer of Equity you providea ccurate information to your Conveyancing Solicitor at the beginning of your case. This will include information relating to why you are transferring the property, the amount of the outstanding mortgage together with any new mortgage amount or increase in the existing mortgage.

Your Conveyancing Solicitor will then provide a breakdown of the legal fees involved and also disbursements.

They will also provide further information as to whether Stamp Duty Land Tax(SDLT) is payable.

Quite a few people do not know SDLT may be payable on a Transfer of Equity, it is therefore important to understand your position to enable you to budget effectively.

If the Transfer of Equity is subject to a Court Order then invariably SDLT is not payable.

SDLT May be Payable when:

On marriage you transfer the property into joint names, an example:

Mr Jones owns a property valued at £500,000 with an outstanding mortgage of £400,000.  Mr Jones marries Mrs Smith and transfers the property with Mrs Smith being responsible for 50% of the existing mortgage i.e. £200,000.

In this scenario HMRC charge SDLT on the amount paid for a property which is £200,000 consideration i.e. 50% of the existing mortgage. The SDLT payable is therefore £1,500.

Your Conveyancing Solicitor will review the circumstances of the Transfer of Equity, the calculations and advise if SDLT is payable. For further information as to whether SDLT is payable please consider www.gov.uk or where you can find other worked examples of when SDLT is payable on a Transfer of Equity.

Completion Day
Once your existing lender has provided consent to proceed with a Transfer of Equity your Conveyancing Solicitor will submit final searches. If the searches are clear and the Transfer has been executed by all parties your Conveyancing Solicitor will send you a Completion Statement setting out the financial elements of the transaction and requesting any balance from youbefore being in a position to proceed.

If you are obtaining a new mortgage you will be required to execute the Transfer Deed and also a new Mortgage Deed before being in a position to complete. Your Conveyancing Solicitor will send you a Completion Statement also setting out the value to redeem your existing mortgage at the same time as transferring the property.

Once completion has taken place your Conveyancing Solicitor will apply to the Land Registry to register the new ownership details.

Our expert team of Conveyancers and Conveyancing Solicitors are on hand to make your Transfer of Equity process as quick and pain-free as possible. We are Conveyancing experts and will advise you through each stage of the transaction.