A Transfer of Equity is when a jointly owned property is transferred to a single one of those owners, or when a single owner adds one or more people to the legal title or ownership of the property.

What is a Transfer of Equity?

Sometimes a property owner may need to change the ownership of their property or the legal title.  This takes place when the owner wants to add or remove one or more people from the title, it doesn’t always involve transferring any actual money.  This is called a Transfer of Equity.

When would I need a Transfer of Equity?

A Transfer of Equity is often required when a couple marries or enters into a civil partnership, or when either of those relationships is dissolved. The legal title will then reflect the new ownership of the property.

Do I need a conveyancer?

In order to protect your own interests, it is always better to engage a conveyancer when the legal ownership of your home is involved. Some Transfers of Equity can be simple to process, but others can be complicated and require more work.

What is involved in the Transfer of Equity?

Once all parties have agreed on the Transfer of Equity, a Deed of Transfer will be drafted for each party to sign. The Deed of Transfer will contain all the legal formalities of who now owns what. Where a remortgage or new mortgage is required, the formalities for this lending should also be completed by the time the Deed of Transfer is signed.

Will my conveyancer work with my lender?

PCS Legal will act on your behalf for both the equity transfer and any mortgage/remortgage as one transaction. PCS Legal also has to represent the interests of the lender when completing the legal formalities, as in all conveyancing.

What happens next?

The Transfer of Equity is complete once the Deed of Transfer has been signed by all parties involved. PCS Legal will complete the transaction by returning a Stamp Duty Land Tax return to HMRC (even if no stamp duty is to be paid) and will register all new interests and charges over the property at HM Land Registry. Now the property is formally registered in the names of the new owners and the Transfer is complete.