Some transfer of equity tips

There are many circumstances in which you may be involved in a transfer of equity, so here are a few tips if you find yourself in this position.

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What is a transfer of equity?

Transfer of equity is what happens when someone is added to or alternatively removed from the deeds to a property. This can happen in a variety of circumstances, in the case of divorce for example, or when joint purchasers go their own ways and one takes over the full legal title of the property.

The equity is the proportion of the property which each individual owns. If there is a mortgage or loan secured against the property, this will affect the equity.

How much does a transfer of equity cost?

Naturally, there are charges involved in a transfer of equity, and you are strongly recommended to take legal advice when you undertake this process. You will find information about transfer of equity costs online at sites such as

Are there tax implications for a transfer of equity?

You may be liable for stamp duty if you receive a payment in exchange for gaining ownership of the land or property. Depending on the circumstances and the value of the transaction, stamp duty may be payable – again, you should consult your legal advisor for information.

How do I carry out a transfer of equity?

Generally, there are some simple steps to follow in the process. First, you need to give your advisor the deeds to the property or details of the registration of the land. Your advisor will then prepare a transfer deed on your behalf.

If there is a mortgage on the property, you need to advise your lender of what you propose to do with the title and ownership. If other loans are secured on the property this matter also needs to be addressed. You will then sign the transfer document and, finally, the Land Registry needs to be informed.

How simple is it to carry out a transfer of equity?

It is a pretty simple process, but as in all legal transactions, it is important to get professional advice. Before you begin the transfer, it is important to have informal talks with the other party, or parties, involved in the transaction and ensure that everyone is happy with the arrangements.

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If there is a mortgage on the property, things get a little more complex since the lender will want to see that the new ownership arrangement does not affect the repayment schedule of the loan which is secured against the property

If you have any doubts about the transaction, make sure that you take legal advice.

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