When someone is added or removed from the title of a property, this is known as a ‘transfer of equity’. Most commonly, this occurs when a property is sold from one person to another. However, you may need to transfer equity if you need to buy or sell a share of a house, gift the property or add or remove a spouse.
While some transfers of equity can be relatively straightforward, the rules can become complex if there is a mortgage on the property or if Inheritance Tax, Capital Gains Tax or Stamp Duty are involved. While there is plenty of information and advice on the Government website, it is recommended that a solicitor or conveyancer is engaged.
Choosing a solicitor
If the transfer of equity is because a property is being sold, or if the owner has died, you may already have employed a solicitor to deal with the sale and/or execution of the Will. A transfer of equity solicitor such as parachutelaw.co.uk/transfer-of-equity-solicitor, for example, will provide independent legal advice for all situations regarding property transfer.
What to expect
Once you have chosen a solicitor, they will obtain and review a copy of the property’s title from the Online Land Registry. Then, they will prepare the legal documents for the transfer, which will include the type of joint agreement (if there will be more than one owner at the end of the transfer). Where there is a mortgage involved, they will obtain consent from the lender, as the responsibilities for paying back the loan will have changed.
Once this has been completed, and any tax obligations have been calculated, the solicitor will arrange for all parties to sign before registering the new documents with the online land registry.