A transfer of equity, or changing who owns a property, is used for a number of reasons. Examples include a relationship breakdown and wanting to give your home to your children while you are still alive.
Legal framework
Whatever the reason for changing who owns a property, it is a legal process. It is therefore essential that it is carried out by a transfer of equity solicitor with the legal knowledge required to successfully add or remove a person from a property’s title deeds.
When you transfer ownership of a property to another person, they own the equity in the property. The equity is the share of the property owned outright; it does not include any amount that is subject to a mortgage.
Love and marriage
If a couple has decided to separate, they may wish to transfer equity so that just one of them owns the property. Similarly, if a couple enters into a civil partnership or gets married, they may wish to change from sole to joint ownership or transfer their property to their now legal partner.
Avoiding inheritance tax
The Times advises that giving your property to your children can be a way of reducing inheritance tax; however, there are complicated tax rules. If you need expert advice, companies such as www.parachutelaw.co.uk/transfer-of-equity-solicitor will take you through the process.
After a death
A property may need to be transferred to a new owner after a co-owner or family member dies.
When a transfer of equity takes place, the solicitor instructed will carry out ID checks, review any mortgage documentation, and check the title of the property with UK Land Registry. They will then prepare a transfer deed, which is the legal document, before registering it with HM Land Registry.
