Transfer of Equity Solicitors

Your Experts in Equity Transfers

When you own a property you may wish to transfer the ownership to another person or people. Similarly if you jointly own a property, you may wish to take on full ownership.

Sometimes it is necessary or desirable to make changes to who owns a property. It could be that you and your partner are separating and one of you wishes to keep the property, or you own property individually and you want to add your partner to the title. Regardless of the reason, when you wish to alter who owns a property you will need to complete a transfer of equity.

Reasons for Transfer of Equity

There are a few reasons why you might want to transfer equity. These include:

• Adding a partner
• Removing a partner as a result of divorce or separation
• Adding a child or grandchild
• Removing a sibling or family member from a property that was transferred because of inheritance

Transfer of Equity and Stamp Duty

A transfer of equity may give rise to a stamp duty liability and/or the need to submit a stamp duty return to the HMRC, particularly if you are paying another party for their share of a property.

It is important to point out that taking on mortgage debt in a property is seen by the HMRC as “consideration” and therefore may be subject to a stamp duty return and liability.

Transactions as a result or in contemplation of divorce proceedings are however exempt from the requirement to submit a return and any liability.

Stamp Duty liabilities are a personal liability and are dependant on your personal circumstances and the transaction you are completing. Our team will be able to advise you on what stamp duty may be due in your circumstances, feel free to call us on 01708 398851.

FAQs

Do I need a solicitor?

It is not always necessary to appoint a solicitor, but we recommend that you do. If someone is being added to a property, you will both be able to instruct the same solicitor. When someone is being removed, it is advisable for both parties to have their own independent solicitor.

If you have a mortgage, your lender will insist that a solicitor is appointed to handle the transfer.

A solicitor will be able to guide you through the process to make sure all the required paperwork is completed accurately. Importantly, when a party is being removed, a solicitor will be able to ensure that the necessary clauses are added to the transfer that there are no future issues.

How long does a Transfer of Equity take?

A transfer of equity usually takes between 4 – 8 weeks to complete, dependent on whether there is a mortgage.

What does Transfer of Equity cost?

Typical legal costs range between £500 – £1,250 plus VAT. There may be additional costs involved which our solicitors will be able to discuss with you. There will also be Land Registry fees for registering the transfer, which range between £150 – £500, dependent on the value of your property.