Home Improvement

How can you transfer equity?

Transfer of equity is the legal process through which part or full ownership of a property is transferred to another person without enacting a sale. Transfer of equity usually occurs when a couple marries and both wish to be on the property’s title deeds, when they divorce and one person will retain the family home, or when ownership is to be transferred to a child or other family member.

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How equity transfer works

The first step is to agree with all parties on how, why and when the transfer of equity will occur. Once in agreement, you should engage the services of a transfer of equity solicitor such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor who will guide you through the process and ensure that it is conducted in an efficient and lawful manner.

The solicitor will engage with all interested parties including mortgage lenders and the Land Registry, updating all pertinent documentation to reflect the change of ownership of the property. They will also ensure that any Capital Gains Tax or Stamp Duty Land Tax that is due is paid by the appropriate person.

How quickly can a transfer of equity happen?

Where the equity transfer is not contentious and the property is not subject to a mortgage, Stamp Duty or Capital Gains Tax, it can happen very quickly with both parties jointly signing the transfer of equity papers and issuing them to the Land Registry.

Where complications arise, such as mortgage repayment concerns, disputes over the transfer of ownership, an inability to fund Stamp Duty Land Tax or concerns over Capital Gains Tax implications, the process will take longer and require a more in-depth assessment by your legal representative.

What fees will a transfer of equity incur?

When carrying out a transfer of equity, you will need to factor in a variety of costs.

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You may need to pay your mortgage lender a transfer fee and depending on the value of the property and the proportion of equity being transferred, you may be liable to pay Stamp Duty Land Tax or Capital Gains Tax. You will also need to pay HM Land Registry for their service which will include conducting searches and updating their records.

Finally, you will need to pay your solicitor’s fees. Many firms will offer this service for a fixed price, aiding budgeting and allowing you to progress your property transfer in a legally compliant way.

Roman Moss

Roman Moss works in business development and regularly contributes to blogs around the web with advice, tips, and strategies for small business marketing and promotion. Even when he’s not in the office Jake is thinking about new marketing tactics and techniques. He just can’t get enough!

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