Property

Transfers of Equity

A transfer of equity involves the transfer of ownership of property into or from joint names. The reasons for this are varied but could include marriage, separation or divorce, tax planning or the adjustment of shares in the property.

Often the transfer involves a remortgage or is subject to existing mortgage conditions. In some ways a transfer of equity is more straightforward in terms of paperwork than a purchase but the involvement of a lender can make the process more difficult.

We know it is important for you to understand what is happening and to be kept informed of the progress of your transaction. We understand that often other arrangements rely upon the completion of a transfer. It is also important that you seek specialist advice about the tax implications of any transfer.

Usually any mortgage lender involved will need to give their consent to a transfer. Some would prefer that you remortgage with them instead. We can deal with your mortgage lenders and explain their individual procedures to you.

There may be Stamp Duty Land Tax payable on the transaction especially where a share of the property is being sold or transferred as a gift. Some equity transfers may be exempt (often where the transfer relates to a divorce) and some are only liable for stamp duty on one half of the debt. Our experienced property lawyers can give you advice on stamp duty land tax (although we still advise that you take independent financial advice as we cannot give you advice relating to any other tax implications of a transfer.)