The ownership of a home does not always change through a sale. Couples move in together or separate, parents pass property on to their children, and sometimes the title simply needs bringing into line with who really owns what. In each of these situations, the legal work involved is a ‘transfer of equity’. The transfer of equity solicitors at BWS Law deal with these changes for homeowners across Loughborough, Leicestershire, and the East Midlands, handling the paperwork, your lender, and HM Land Registry so that the change is made properly and without fuss.
A transfer of equity is a change in the legal ownership of a property in which at least one of the existing owners stays on the title. Rather than the whole property being sold, a share of it passes to or from someone. The most common examples include:
Although a transfer of equity is usually simpler than a sale, it still needs to be documented correctly and registered at HM Land Registry, and there are mortgage, tax, and ownership issues that need to be considered before anything is signed.
The transfer of equity solicitors at BWS Law handle the process from first instruction to registration. Some of the main areas our work covers include the following.
Before any documents are prepared, we make sure everyone understands what the transfer will mean. We explain whether the share should pass for a payment or as a gift, how the property will be owned afterwards, and what each person’s rights and responsibilities will be once the transfer is complete.
Where the owners will hold the property in unequal shares, or want to record who contributed what, we can prepare a declaration of trust alongside the transfer. And where the interests of the people involved may conflict, for example, when one person is giving up their share, we will tell you at the start whether the other party should take independent legal advice.
If there is a mortgage on the property, the lender’s consent is needed before anyone can be added to or removed from the title. Someone leaving the title will also need to be released from the mortgage, and someone joining will usually be asked to become a borrower.
We obtain the lender’s consent, deal with its requirements, and prepare any documents it needs, including the deed of release or deed of covenant. Where the transfer is being combined with a switch to a new lender, we can deal with the transfer and the remortgage together as a single transaction.
Stamp Duty Land Tax can be payable on a transfer of equity even when no money changes hands, because taking on responsibility for a share of an existing mortgage counts as payment for tax purposes. There are exemptions, including for many transfers between spouses and civil partners on divorce or dissolution, and higher rates can apply if the person coming onto the title owns another property.
We work out whether Stamp Duty Land Tax is due, submit the return and arrange payment where it is, and let you know if the transfer raises capital gains tax or inheritance tax questions on which you should take advice from an accountant or tax adviser.
A transfer of equity is sometimes the final step in a separation, putting into effect an agreement or court order that one person will keep the family home. Timing and detail matter here, because the departing person will want to be sure they are released from the mortgage as well as the title, and the person staying will want the transfer completed on the terms agreed.
We liaise with your family solicitor and the other party’s advisers, prepare the transfer to reflect the order or agreement, and coordinate completion with the lender. If you also need advice on the financial side of your separation, our family team can help.
Passing a home, or a share of it, to a child or other relative is a generous move, and it is one worth thinking through carefully. Continuing to live in a property after giving it away, the effect on the person receiving it if they later divorce or face financial difficulty, and the possible impact on future care costs are all points to consider.
We explain the practical and legal consequences before you proceed, prepare the transfer, and recommend specialist tax or estate planning advice where the circumstances call for it.
Once everyone is ready to proceed, we prepare the transfer deed, verify each person’s identity, arrange for the deed to be signed and witnessed, and complete the transfer. We then register the change at HM Land Registry, together with any new mortgage or restriction, and send you the updated title once registration is confirmed.
Whatever the reason for your transfer of equity, our job is to make it as smooth as possible. Here is what you can expect when you instruct our transfer of equity solicitors.
Transfers of equity are part of our everyday work, and we have dealt with them in every context, from a couple adding a name to the title to complex family gifts and transfers arising from divorce. We know where the difficulties tend to lie and how to deal with them before they cause delay.
BWS Law has served the people of Loughborough and the surrounding villages for decades, and we know the local property market and the professionals who work in it. You are welcome to visit us in the town centre or deal with us by phone and email, whichever suits you.
A transfer of equity often follows a significant change in someone’s life, whether happy or difficult. We deal with your matter discreetly and with care, explain each step in plain terms, and keep you informed throughout without adding to the pressure you may already be under.
You will receive a written quote for the whole transaction before we begin, covering our fees and any Land Registry or other costs involved. That is the figure you will pay, with no extras appearing along the way.
If you need to add someone to the ownership of a property, remove someone from it, or transfer a share to a family member, our transfer of equity solicitors would be pleased to help.
To discuss your transfer of equity, call us on 01509 270288 or complete our enquiry form and we will be in touch.
