Residential Property

Transfer of Equity

‘Transfer of equity’ refers to the change the legal ownership of a property by the formal process of adding or removing someone from the title deeds of the property.

Reasons for Transfer of Equity.

There are many reasons why you might want to change the legal ownership of your property.

Divorce or Separation – It may have been agreed or ordered at Divorce for the ownership of the property to change.

New Relationship – You might wish to consider registering your new partner as a joint owner of your property, if you have started living together and intend the property to be your joint home.  

Tax Efficiency – Some owners sometimes transfer equity to their children or other family members to be more tax efficient. 

Gift – you may wish to transfer the whole or part of your property to someone as a gift.

Investment – you may agree that another party acquires a share of your property in return for cash.

What if you have an existing mortgage?

When transferring equity, there are additional factors to consider if you have a mortgage or other charge secured on your home.

Firstly, you will need to obtain the written consent of the lender before the transfer process can be completed. Without the consent of the lender, the Land Registry will be unable to register the change of ownership in respect of the legal title.

The lender may stipulate that the mortgage must be redeemed, or the new party added to the current loan by way of a new mortgage deed before they will consent to the change of legal ownership.

Similarly, when someone is removed off the title, they are simultaneously seeking to remove themselves from the credit agreement represented by the mortgage. You can’t just walk away from a credit arrangement as you can from any other: you have to first resolve the debt you still owe.

If the existing mortgage is to be kept by the person whose name will stay on the property, the lender must be satisfied that that person will be able to make the required mortgage payments on his or her own.

Usually, a new mortgage will be incepted by the remaining owner in their sole name so that the outgoing party can be released from the obligations under the existing mortgage.

If a new owner is being added to the legal title to your property, then it is sometimes the case that there will need to be a new mortgage in the joint names of the new owner and the current owner.

How much does a transfer of equity cost?

At Laker Legal we specialise in all aspects of the transfer of equity process and can offer a fixed fee from £500 plus VAT to carry out the legal work for you.

There will also be a cost to the Land Registry which you must pay when changing the title deeds.  This cost is calculated by reference to the deemed value of the property which is being transferred.

There could also be stamp duty if you are buying a share of the property or taking on a mortgage in excess of £125,000.

If you would like to discuss further and obtain a written quote then please contact us today.

Laker Legal Solicitors are on the panel of the majority of major mortgage lenders and so should be able to assist you in your proposed transaction.

What our clients say

Don't take our word for it...

Jessica Blacow from Laker Legal Solicitors Lancaster pulled out every stop truly amazing lady / firm nothing was to much trouble I honestly felt like they was my friends not just a firm that wanted your money but a solicitor firm that cared with compassion I will use Laker Legal Solicitors Lancaster for all my needs in the future.

Mr T, Lancaster

Stephen – Just to say a massive heartfelt THANK YOU for all your work and support , not only on the sale of our business but the opening too.
You’re truly one in a million, and we appreciate all you’ve done.

Ms G & Ms K – Wheatley, Oxfordshire

“I am very pleased with Laker Legal firm, my Solicitor John Hirst, was extremely helpful throughout the drawing of my prenuptial agreement. A very professional and knowledgeable approach yet warm, and friendly enough to feel comfortable with in a situation that can be quite uncanny to discuss or uneasy as per say. Thankyou again!

Mrs V – London

“A devastating event brought us to call on Laker Legal. We were put in touch with Mr John Hirst, and from the first Moment we spoke to him we knew everything was going to be ok. Mr John Hirst, was always on the end of the Phone or Email, Kept in touch with us 100% of the time, and the support we received took so much pain off our family. All i can say is Thank you so much for everything you did for us."

Ms P - Maidstone

Quality of service from Laker Legal in regard to selling our house was excellent, they were very friendly and worked very effectively.
Thank you!

Mrs C, King Hill, Kent.

A big ‘thank you’ Richard from Steve and myself. Your time and attention you gave to both of us was remarkable. I’ve had dealings with many solicitors over the years, but have never received this level of service as you gave.

Mrs R – West Malling, Kent

Thank you so much Richard, you have been so kind and patient with me when I have been at about the lowest point of my life after losing my wife, I can never thank you enough. I will also let my family know my wishes that Laker Legal Solicitors deal with my estate when that time comes.

Mr Y, Addington, Kent.

Thank you for all your help and support over the last 12 months. You and the team at Laker Legal have been fantastic.
Sarah was lovely and really supportive yesterday

Ms. W of Leyland

Our Team

With over 100 years of experience in legal practice we are the solicitors for you.

Legal Services You Can Trust