Transfer Equity/ Ownership-conveyancing guide
Homeowners can face a number of problems when it comes to transferring equity, including the legal process and the costs involved. The good news is that you don't have to worry about this because we've got your back. We put you through to Conveyancers who will guide you through every step of the way so that your transfer goes as smoothly as possible and within a reasonable amount of time.
What does transfer or equity/ ownership mean?
The transfer of equity or the transfer of ownership of a property is when the ownership of a property is transferred from one person to another. Equity refers to the amount of value you own in your property:
The market value of property in today's value - outstanding sum on your mortgage= Equity.
Reasons to transfer equity
You may want to change who owns your property or give them a percentage of ownership.
Here are the most common reasons as to why people transfer equity:
•Removing an ex-partner to transfer yourself back 100% ownership.
•Sharing ownership/ adding- partner, children, or friend.
•Changing ownership for inheritance tax or personal capital gains reasons.
What are the steps?
1. Gather relevant documents for your Conveyender: title deeds, property deeds, ID.
2.No mortgage transfer: the existing and new owner sign a transfer deed that our Conveyancers then register with the Land Registry- if the value of this transaction exceeds £40,000 a stamp duty certificate is needed.
3. Transfer with a mortgage- if there is still a mortgage in place the transfer is slightly different. Checks will be made with your lender and your lender will want to conduct checks on the new party involved in ownership. Your conveyancer will contact your lender for formal consent to transfer ownership once all is in order. The mortgage will either then continue to be paid or you will need to transfer to a different mortgage provider if not agreed with your current provider.