Common Questions Around Transfer Of Equity

The process of transferring equity is hardly a simple one, therefore there are often questions around how it works, how long it is likely to take, and any relevant stipulations. Necessary for those adding or removing someone from the title deeds of property, transferring equity may be necessary in a number of different contexts, such as separating from a partner or buying out a joint owner. Solicitors are a crucial asset during this process, and within this blog post, the experts at Andrew Lee Property Lawyers will take you through some of the most common questions we’re asked throughout.

What Actually Is Transfer Of Equity?

Put simply, equity is the portion of a property that you own outright at any given time.One example of this would be that if your home is worth £250,000 and you have a mortgage of £200,000 outstanding, your equity in the property would stand at £50,000. In most cases, if one owner gives up their equity in the domestic or commercial property, they are then entitled to receive that amount.

Transfer of equity refers to the legal process of removing or adding someone to the ownership of the property in question, and this can be done in several ways, and for several different reasons. Transfer of equity occurs when the property is not being sold, and at least one of the original owners will stay the same during the transfer.



Why Would I Decide To Do So?

Different circumstances call for different actions, and you may be looking at equity transfer as a result of a lifestyle change or particular occurrence. Equity transfers are necessary when adding someone to the ownership of a property, such as a new partner or family member. In opposition to this, you may be looking to remove someone from the ownership, such as an ex-partner in a divorce.

Other instances may include changing the percentage shares owned by the joint owners of a property, for example, changing a 50-50 ownership to a 60-40 ownership. If there is no mortgage involved, then the transfer should happen fairly quickly, though with a mortgage to contend with, the whole process can take longer. The transfer may also take longer if it is part of wider financial arrangements.

How Can A Legal Professional Assist?

How a transfer of equity works depends quite a bit on your individual circumstances, therefore it is always advisable to get legal advice, especially if your situation is complex. Professional guidance will ensure an equity transfer runs smoothly, and if ill-equipped with inadequate or inaccurate information, a transfer of equity can become a messy situation involving more time and money than you’d like.

At Andrew Lee Property Lawyers, our team of conveyancing and property law professionals ensure you understand your requirements and obligations when you initiate a transfer of equity, including the terms of your mortgage. We provide our property law expertise and experience to streamline and simplify the process.

Responsible for helping you organise, prepare and lodge legal documents and paperwork, our mortgage solicitors and mortgage lawyers take the stress out of making a move. Our friendly team in Kent help with all things property law and conveyancing, ensuring you are fully prepared for your exciting sale or purchase, so contact today for a consultation.