Whether you are buying an ex-partner out of your home, you want to pass a share to a new partner or spouse, or you are estate planning and want to gift your property to a family member, our specialist transfer of equity solicitors can provide advice on all aspects of legally transferring ownership of a property or a share of a property.
When it comes to conveyancing, you need a solicitor you can trust to ensure your property transaction is dealt with efficiently and professionally. Our conveyancing team have the ability to provide you with expert advice based on years of property law experience. We treat every step of the conveyancing process with meticulous attention to detail to ensure the transaction goes smoothly and to prevent you being hit with any unforeseen issues or costs down the line.
We have offices serving local communities and businesses across Grantham, Newark, and Lincoln. However, our skills and modern processes also draw clients from all across the UK and abroad. Our efficient online conveyancing service means you never need to come in to our offices (unless you want to). Using email, phone, Skype, and Facetime video calling, you can deal with your transfer of equity entirely from the comfort of your own home if you wish.
For an instant transfer of equity quote, use the quote calculator to the right of the page or call our dedicated conveyancing quote line on 01636 600 656.
For further advice or information from our transfer of equity lawyers, call 01476 372 044 or fill in our simple enquiry form.
What our transfer of equity solicitors can do for you
Whatever reason you want to transfer ownership or a share of your property, our transfer of equity solicitors are on hand to provide you with clear, practical advice and assistance.
We can handle every aspect of the property transaction on your behalf, including:
- Reviewing deeds of title
- Preparing the transfer deed
- Providing advice regarding Stamp Duty Land Tax (SDLT) and filing the SDLT return
- Liaising with any mortgage lenders with charges over the property
What is a transfer of equity?
Transfer of equity (or transfer of title) refers to the process of adding or removing someone from the ownership of a property. In some cases, this may involve a person passing 100% of the property’s ownership; in others, just a share of the equity is passed.
The term ‘equity’ refers to the value of your house once the outstanding mortgage has been deducted. For example, if your house is worth £150,000 and there is an outstanding mortgage of £100,000, the available equity is £50,000. Therefore, if you are the sole owner and you transfer 50% of the equity to your partner, your beneficial equity entitlement becomes £25,000 and both of you become responsible for paying the mortgage.
When might you need to do a transfer of equity?
There are many reasons you may wish to undertake a transfer of equity, such as:
- You want to gift your home to your children as part of your future estate planning (for example, to reduce the value of your estate to avoid Inheritance Tax).
- You and an ex-partner jointly own a house and one of you wants to buy out the other.
- You want to add a new spouse or partner’s name to the title of a property you solely own.
How does a transfer of equity work?
The way your transfer of equity works will depend on your individual situation. During your initial appointment with our transfer of equity solicitors, we will take on board exactly what you are looking to achieve, and tailor our approach accordingly.
The basic process involves your transfer of equity solicitors checking the title to your property, preparing a transfer deed, dealing with Stamp Duty (if necessary) and dealing with any mortgage lenders on your behalf.
What happens if there’s a mortgage on the property?
If there is an existing mortgage on the property, there will usually be a requirement to obtain the mortgage lender’s consent before you can transfer equity.
If you want to add someone to the title, they will become equally liable to pay the mortgage. Similarly, if you want to remove someone from the title, your lender will need to check the remaining owners can afford to maintain the mortgage.
What happens if the mortgage lender does not consent to the transfer of equity?
If the mortgage lender will not consent to the transfer of equity, the mortgage will usually need to be paid off before it can progress. There are two main ways this can be done:
- A cash payment to pay off the remaining outstanding sum
- A remortgage with a different lender who consents to the transfer
When do you need to pay Stamp Duty Land Tax on a transfer of equity?
Stamp duty on transfer of equity in property may become due if you receive a transfer of property (in whole or in part) and you give something of monetary value in exchange. This can be complex in these matters and will depend on the facts of the case.
You may have to pay Stamp Duty in the following circumstances:
- You are marrying or entering into a civil partnership and you want to transfer a share in property to your spouse.
- You and another person jointly own a property and you either buy out the other person or buy an unequal proportion of the equity.
- If you’re given property as a gift and there is an outstanding mortgage, you will pay Stamp Duty on the mortgage.
- If you transfer property to or from a company, Stamp Duty is due on the market value of the property, not just the valuable consideration put towards the transfer. For example, if a property is worth £150,000 and you only buy a £50,000 share, Stamp Duty is still payable on £150,000.
You usually don’t need to pay Stamp Duty if:
- The amount contributed towards the transfer falls below the Stamp Duty Land Tax threshold, which is currently £125,000.
- You are gifted property and there is no mortgage on it.
- The transfer of equity is due to a divorce, legal separation, or civil partnership dissolution and the parties have agreed to transfer or the court has ordered it.
- You and others jointly own property which is divided physically and equally.
How much does Stamp Duty cost?
For all transfers with a value under £125,000, there is no Stamp Duty to pay. For example, if your partner’s property is worth £200,000 with a mortgage of £140,000 and you pay £30,000 to add your name to the title and take on responsibility for £70,000 of the mortgage, your total contribution is £100,000 so you do not have to pay Stamp Duty.
For transfers with a value over £125,000, Stamp Duty is charged at the following rates:
- £125,000-£250,000 – 2%
- £250,000-£925,000 – 5%
- £925,000-£1,500,000 – 10%
- £1,500,000 – 12%
For example, to acquire 50% of the equity in a property worth £600,000 with no mortgage (a cash payment of £300,000) you will pay Stamp Duty as follows:
- First £125,000 – 0%
- Tax the next £125,000 – 2%
- Tax on the remaining £50,000 – 5%
How long does transfer of equity take?
Depending on how straightforward your circumstances are, your transfer of equity is likely to take around one to two months. However, this is subject to no difficulties arising, such as the mortgage lender failing to consent to the transfer.
Why should you choose Bird & Co’s transfer of equity lawyers?
Our team of expert transfer of equity lawyers pride ourselves on our ability to handle your property transaction proficiently, efficiently, and cost-effectively.
Our modern approach to conveyancing services means you never have to come to our offices for face-to-face advice (unless you want to). If it suits you, we can handle your transaction entirely online and over the phone, using email, Skype, and even Facetime video calls. We can even exchange crucial documents online using our secure systems, and we are accredited in the Cyber Essentials Scheme for our proficiency in protecting ourselves and our clients from online cyber security threats.
We have an enviable reputation for our conveyancing skills and we are accredited by the Law Society in the Conveyancing Quality Scheme for our ability to assist clients with all manner of residential conveyancing matter, including buying and selling houses and transfer of equity.
The satisfaction of our clients remains central to everything we do here at Bird & Co, and we are Law Society accredited in Lexcel, the legal practice quality mark for excellence in client care and practice management.
Bird & Co is independently regulated by the Solicitors Regulation Authority (SRA).
Contact our equity of transfer solicitors for expert independent legal advice today
For further advice and information from our transfer of equity lawyers, call 01476 372 044 or fill in our simple enquiry form.