Transfer of Equity
A Transfer of Equity is when someone is added or removed from the title deeds, such as a sole owner adding their husband or wife, a parent adding their son or daughter or a separating couple. If there is a mortgage on the property you will also need to change the mortgage deed.
In-Deed's highly-recommended solicitors offer fast, low cost conveyancing for your transfer of equity, and will be able to assist with any specific questions you may have. Click here to get a transfer of equity quote, or call our conveyancing staff on 0330 660 0643.
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Transfer of Equity - More information
If there is no mortgage on the property and no money will be changing hands then a transfer of equity is a fairly simple process. Your lawyer should be able to complete the transfer quite quickly depending on how fast you provide certified identification and return documents. The Land Registry will then take a few weeks to fully register the new owners of the property.
If you want to add or remove someone from the title deeds and there is a mortgage involved, you will need permission from your mortgage lender. This is because the names on the mortgage deed will probably have to match the names on the transfer deed. Unfortunately, this means the process is more complicated and therefore your legal fees will be higher.
Similarly if money is changing hands e.g. if someone is being removed and the remaining owner is buying out their share, then this will make the transfer of equity more complicated and you may incur additional fees.
Although your lawyer will provide a fixed fee for your legal costs it is impossible to do this with some disbursements, which are payments your lawyer has to make to third parties on your behalf. Until your lawyer investigates your specific circumstances they will be unable to fully quote you for the following:-
Did you know that you may have to pay stamp duty when adding or removing someone from the title deeds?
This is because anything of monetary value that’s given in exchange for the property is referred to as the ‘consideration’. This could include a cash transfer or a mortgage.
Until your lawyer investigates your specific circumstances it is impossible for them to determine if stamp duty is payable and if so how much. Please visit the HMRC’s website to find out more information.
Search Indemnity Insurance
If there is a mortgage involved, chances are the mortgage lender will ask you to pay for search indemnity insurance. The insurance will protect your lender from financial losses if anything that would have been revealed in the searches affects the value of the property. How much this insurance costs will be dependent on a number of factors, such as the value of the mortgage and the value of the property. You can expect to pay about £50 and this will be a one-off payment, not an annual policy.
Land Registry Fee
The Land Registry will charge a fee for changing the owners of the property and how much they will charge depends on a number of factors such as how much the property is worth, the value of the mortgage etc. This will cost a minimum of £40.
If the property is leasehold then it is likely that the freeholder will charge their own administration fees. Your lawyer will make you aware of these as soon as they are informed by the freeholder, but you might be able to find out yourself by contacting the management company/landlord directly.
At In-Deed we have helped many of our clients complete transfers of equity. Throughout the process you will work with one experienced conveyancing lawyer based in our law firm and be provided with their direct telephone number and email address. If you would like to get a quote for your transfer of equity then please call us on 0330 660 0643 or email firstname.lastname@example.org