Transfer of equity: What is it and who might need to do it?

Simply put, this is the situation when the owner of a property needs to change the property’s legal titles by adding or removing a person from this document. By doing so, this will change the ownership of the property. It is important to note that in this process no sale of the property will take place, and at least one of the original owners will remain named on the title deeds.

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Who may need to do it

There are many sets of circumstances that can lead a property owner to transfer some of the equity in their home. Common reasons include divorce or separation, where the assets need to be divided up. Similarly, if a single person who had purchased a property enters into a relationship, he or she may wish to add their partner to the title deeds. For those who bought a property as a joint investment, the time may have come to buy out one or more of their fellow owners, and there are also those who want to transfer a portion of a property’s ownership for taxation reasons.

How it is achieved

The equity in the term refers to the value of a property, so any transfer of this will affect the amount of the property owned by the individuals named in the property titles. This means that carrying out such a transfer must be done with care, following correct procedure. It is always best to go through this process with expert guidance, such as with Sam Conveyancing. If you bought your home through a Government Help To Buy scheme then there are other stipulations that must be followed if you wish to transfer a portion of the ownership. See the Government’s website for the most information on this.

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The first step is obtaining an official copy of the title for the property, if it’s registered with the Land Registry. Should the property not be registered with the Land Registry, then the original title deeds must be produced in order to make the transfer. These documents will then be reviewed before the parties involved meet, in order to sign the new title deeds in the presence of a witness. This is typically carried out at a solicitor’s office. It’s important to note that if there is any mortgage or other loan secured on the property, the lender must be informed, and grant their permission in writing before the transfer may take take place. Finally, the new title deeds are registered with the Land Registry, and a fee proportional to the property’s value will need to be paid.

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