Sometimes, you may need to complete a transfer of equity. This could be for several reasons but is most common in cases of separation or divorce, when one party may choose to leave the joint home. This is often called a ‘buyout’. Alternatively, you might want to add a new partner or spouse to your mortgage.
Transferring equity means you’ll legally alter the ownership structure of your property – usually from joint to sole ownership or vice versa. You could transfer the property in its entirety, or simply adjust the percentages that each party owns.
Here, we’ll break down the legal process of equity transfer into some simple steps:
You’ll need all parties to agree to start the legal process. You’ll also need the assistance of an experienced transfer of equity solicitor, such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor, to guide you through the process.
Agree on The Split
You’ll need to agree on your ownership percentages and agree on a fair equity split with the other party.
Think About Financials
You might need to consider settling outstanding finances or refinancing, depending on how much money is involved in your equity transfer.
A legal professional will help prepare the documents, such as the Transfer Deed. They’ll guide you through the process and help with requirements for the Land Registry.
If you’ve got a mortgage, you’ll need to seek approval from your lender. They’ll want to assess the affordability of the party who intends to take over the ownership. You’ll need to make sure your lender is fully onboard and keep them up to date with the process.
It’s possible that there could be implications regarding Stamp Duty, so seeking professional advice is a must.