What is a Transfer of Equity?
A transfer of equity is a legal transaction that changes or amends the ownership of a property other than by a sale. It could occur where joint owners transfer the property into the sole name of one of them, or where a sole owner transfers the property into joint ownership.
Whatever the reason for the transfer of equity, Janet Sinden & Co can help you with the process. As with all of the transactions in which we are involved, we will always strive to be as efficient as possible and will make sure that we deal with everything in such a way as to cause you as little stress as we can.
It is usual for a transfer of equity to be much more straightforward than a normal sale or purchase. For example, searches or enquiries will be much more limited because the parties are likely already to have knowledge of the property and there is rarely a need for a contract.
The main complication tends to be where the property is subject to a mortgage since the consent of the lender will need to be obtained before the transfer can take place.
There are various reasons why you might want to carry out a transfer of equity. A common one is because the owner of the property has entered into a new relationship or marriage and wishes to put the new partner/spouse onto the deeds of the house they will be living in.
Sometimes, however, it may be because a relationship has broken down and the property is being transferred from joint names into the sole name of one of the parties to the relationship – for example following a separation or divorce.
In some cases it may be for tax planning purposes so that ownership can be transferred into the name of a third party (for example a family member) to help reduce tax liabilities or to help ensure that the property remains in the family.
The transfer of equity process
Although the transfer of equity is more straightforward than undertaking a sale or purchase, nevertheless there are still a number of essential steps that we will be required to take on your behalf in order for the transaction to be carried out. Provided that there is agreement as to what everyone wants from the transaction, however, then the process should be straightforward, and we will help you with all that is required.
If the transfer of equity is taking place as part of a divorce, then it is likely that each party will have their own solicitor representing and advising them. If that is the case, then we will work with those other solicitors to make sure that there are as few complications as possible.
The following is a brief overview of what we are likely to need to do. Not all transfers of equity will proceed this way and details can vary according to the nature of the transaction, the type of property and where it is located. Be assured, however, that we will always tailor our services to meet your precise needs and requirements. Should you need more information, then please do not hesitate to contact us.
- We will obtain details of the legal title to the property – either the deeds or an official copy of the title from H M Land Registry. We will then review the title to check for a mortgage or any other restrictions on the property. At this point, we will also need to ask for evidence of your identity so that we can comply with the strict money laundering duties the law places upon us.
- Next, we will draw up the transfer deed document ready to be signed.
- If the property is subject to a mortgage, then you will need the consent of the lender before a transfer can go ahead. If the property is being transferred subject to the current mortgage, the lender will need to be a party to the transfer deed. Sometimes, however, the mortgage will be paid off at the same time, in which case we will need to get a redemption figure from the lender.
- Once we have prepared the paperwork, the next step will be to get the various parties to sign it.
- Finally, once the transfer has taken place, we will need to register the details of the transfer at H M Land Registry. This will involve the payment of a fee.
At Janet Sinden & Co we don’t believe in hiding our prices. We believe firmly in allowing clients to judge value for money and as such we make sure that we are transparent regarding our fees at all times. You can be sure that, when instructing us, there will be no hidden surprises.
For more information about our fees and anticipated disbursements please go to the Conveyancing Charges. Also, we will always make totally clear how our charges and disbursements in our cost quotation that we will supply to you at the outset of the matter.
How Long Will It Take?
How long your transfer of equity will take depends on several factors including the property itself, whether a mortgage provider is involved and how willing the other parties to the transaction are that the matter should be completed. Rest assured that we will always try and make sure that your transaction takes no longer than is absolutely necessary.
It is difficult to give a precise time for the transaction as it may be tied up with how long it takes for a matrimonial settlement to be reached. However, the actual legal work involved in the transfer should take no more than 3 to 6 weeks.
To ensure your transaction proceeds as quickly as possible we will always chase up the progress of your transaction and will not simply wait for something to happen. However, just because the transaction is not moving forwards does not mean that it is us that is holding it up.
Who Will carry out the Work?
Your transfer of equity will be carried out by members of the Janet Sinden & Co property team. The team has many years of collective experience in delivering high quality work in all matters relating to transfers of equity.
One of our conveyancers will work on your matter. Regardless of who works on your matter, they will be supervised by Christopher Bean or Deborah Stanley. Full details of each will be found in the Meet the Team section of this website.