The transfer of equity process
The amount of equity that is involved will be different in every case and is subject to changes in the market, as it’s simply the value of your property minus the outstanding mortgage due. For example, if a property has a current value of £250,000 and an outstanding mortgage of £150,000, the equity is £100,000.
For the purposes of equity transfer, you can transfer a portion of the equity to another person (or even multiple people) but this is based on the equity amount alone and not the full resale value of the property.
Transferring some of the equity of a London property to someone else always starts with the official property title. There are identity checks required for everyone involved to ensure that all parties are who they say they are and then the transfer deed can be prepared.
If there is no mortgage on the property then the process is more straightforward, with the existing and any new co-owners of the property signing the deed in front of a witness and the registration of the transfer deed with the Land Registry. Depending on the sums involved, there may be a stamp duty certificate needed.
If there is a mortgage still outstanding on the property, the lender will need to give their consent for the transfer of equity in London, which means that the new co-owner becomes equally liable for the mortgage. The lender will only give permission if they are satisfied that the new co-owner is able to repay the mortgage themselves, which can add a layer of complexity in some cases. The lender may also want to change some of the terms of the mortgage in order to give permission for the transfer of equity.
If the mortgage lender refuses permission for the transfer of equity, the mortgage will need to be repaid to them before any equity transfer can take place. Usually, this is done by remortgaging with a different lender who is agreeable to the changes you wish to make.
A transfer of equity solicitor will help you with the entire process and ensure you’re always up to date with where things are up to and what to expect next.
Do I need a solicitor if equity is being transferred away from me?
If you are the party that is being removed from the title deeds of a property, after a divorce, for example, it can make sense for you to take legal advice from a solicitor to ensure that your interests are protected during the process and outcome.
Why choose Stephensons as your transfer of equity solicitors?
The Stephensons team are highly experienced transfer of equity solicitors, helping people in a variety of different situations to successfully change the ownership structure of a property.
With a proven track record of helping homeowners with this process, which can seem a little daunting or complex at times, we offer specialist legal property support you can trust.
Get in touch to find out more by calling 0161 696 6187.