When you own a property and decide to transfer ownership to another person, or if you jointly own a property and wish to take on full ownership, the process can be quite intricate and involve various aspects.
To ensure a smooth and successful transfer of equity, it is essential to be well-prepared and seek expert advice.
What is transfer of equity?
A transfer of equity involves making changes to the ownership of a property by either adding or removing a party from the property deeds. This can occur for various reasons, and one common scenario is when a couple separates or divorces, and one party wishes to buy out the other’s share in the property.
In such cases, the party buying out the other may need to remortgage the property to release funds for the settlement. The remortgage allows the buying party to take on a new mortgage or increase the existing one to raise the necessary funds to pay the outgoing party. The transfer of equity and remortgage often go hand in hand in these situations, as the change in ownership requires the legal transfer of title deeds, and the remortgage facilitates the financial aspects of the transaction.
Both processes involve legal and financial complexities, and it is crucial to seek the advice and assistance of experienced lawyers to ensure a smooth and legally sound transfer of equity and remortgage process.
What are your fees?
Our fees for a Transfer of Equity (our fees will also include acting in any linked remortgage) start from £795 plus VAT and disbursements which will include Land Registry fees.
Transparent Pricing: when we furnish you with a written quote, rest assured that the price will remain unchanged unless the original information provided by you is incorrect or unforeseen circumstances arise.
Do I need to appoint a conveyancing lawyer?
When a mortgage is involved, whether it’s an existing one or a new one being taken out, the mortgage lender will typically require the involvement of solicitors to ensure that the legal process is carried out accurately. This step is taken to safeguard the interests of all parties and ensure that the property’s title is properly transferred.
Even in cases where no money is changing hands, property transfers can be intricate due to the legal procedures and documentation required. Engaging a conveyancing lawyer in such situations is essential to navigate the process efficiently and ensure all necessary legal aspects are taken care of.
Furthermore, various tax implications may arise during a property transfer, such as Stamp Duty Land Tax, Capital Gains Tax, and Inheritance Tax. It’s crucial to consider these implications and comply with the relevant tax regulations to avoid any potential issues.
By instructing a conveyancing lawyer to handle the process, you gain legal protection and assurance that the transfer is executed correctly.
How long will it take?
A simple transfer of equity could take anywhere between 5 -10 weeks. However, it’s essential to remember that each transaction is unique, and the time taken to complete the transfer can vary significantly based on individual circumstances.
When there is an existing mortgage on the property, the process can be prolonged because consent must be obtained in writing from any lenders involved if the mortgage is not to be redeemed on completion.
Additionally, if the transfer of equity is part of a divorce being resolved in court, the process may be delayed until all related disagreements are resolved. The transfer may be dependent on the final decisions made in the legal proceedings.
Other factors that can influence the timeline include the efficiency of all parties involved, the accuracy of documentation, and any potential legal or financial complexities associated with the transfer.
Why instruct Ames Kent?
Our firm specialises in handling property transfers, and we have a thorough understanding of the legal complexities involved in such transactions.
We will walk you through the entire process, handling all the moving parts with precision and efficiency. We will ensure that all necessary legal documentation is prepared accurately, and we will guide you through any required negotiations and procedures.
Whether you are transferring ownership to family members, friends, or any other parties, or if you are seeking to change the ownership structure of a jointly owned property, our team is here to provide the expert advice and support you need.