A Quick Breakdown of the Transfer of Equity Process

Equity is the portion of your property you own outright, it's calculated as the value of your home minus any outstanding mortgage repayments. Transfer of equity is a legal process that involves changing the name on the deed to the property. This may happen for various reasons, most commonly divorces, marriages or gifting a property.

In this blog post, we will break down the equity transfer process into individual steps, making it easier to understand what to expect along the way.

Step 1: Find a Licensed Conveyancer

Start by finding a reputable licensed conveyancer or a dedicated transfer of equity solicitor. They will assess your needs, explain the legal process in more detail and establish a plan of action.

Step 2: Confirm Ownership Information

Your transfer of equity solicitor will perform a Land Registry search to confirm that all the ownership information about the properties is correct. They will also check whether your property has an active mortgage or is restricted in any other way.

Step 3: Prepare Paperwork

Once your solicitor has gathered all the necessary information, they will begin filling out the formal paperwork. This involves preparing the transfer deed, which details the equity transfer and information about the parties involved.

Step 4: Notify Third Parties

Any properties with third parties involved, such as a mortgage lender, will need to provide their written consent for the transfer of equity. Your transfer of equity solicitor will handle this process, but bear in mind that your mortgage lender may need to amend your mortgage terms and agreement to accommodate the new party.

Step 5: Sign the Deed

Once the third parties have given their consent, the next step is to meet with the solicitor to sign the deed. The paperwork must be signed by everyone involved in the property transfer, as well as an independent witness.

Step 6: Submission to Land Registry

To formally register the change in ownership, the deed transfer document will then be submitted to Land Registry. This process requires paying a fee that ranges from around £50 to £1000, depending on the value of your property.

Step 7: Pay Stamp Duty

If stamp duty Land Tax (SDLT) applies, your licensed conveyancer or transfer of equity solicitor will ensure the payment is made to HMRC on your behalf.

Step 8: Transfer Completion

Once these steps are completed, the transfer of equity is finalised. Although the process may initially seem complex, working with a reliable licensed conveyancer or transfer of equity solicitor ensures everything is handled correctly, making the process seamless and stress-free.

Andrew Lee & Co.

At Andrew Lee & Co., our team of licensed conveyancers brings extensive experience in delivering essential property law services, including transfer of equity, mortgages, remortgages, and more. We pride ourselves on providing a professional and tailored approach, ensuring your property transactions are handled efficiently.

For more information on our property law services, contact the team at Andrew Lee & Co. today. Let us take the hassle out of your property legal needs.