What is an Equity Transfer?

From buying out a joint owner of a property to dividing up assets after a separation, an equity transfer can be used for a range of reasons. 

To learn more, including what is an equity transfer in the UK and when it is necessary, read on.

What is a Transfer of Equity? 

A transfer of equity is the legal process of adding or removing an individual, such as a family member, to the ownership of a property. 

In What Situations Are Equity Transfers Required? 

There are several situations where a transfer of equity may be undertaken, including: 

• To remove an individual from the property ownership, such as removing an ex-partner during a divorce
• To remove an individual from the property ownership and replace them with another
• To add an individual to the property ownership, such as adding a new partner
• To alter the ownership percentage between joint owners. For example, adjusting share from a 50/50 split to 75/25
• For tax reasons if transferring equity to family members as a gift

How to Get an Equity Transfer

When it comes to an equity transfer, several steps are involved. These include: 

1. Instruct a Solicitor

Appointing a solicitor for the equity transfer is an essential first step. The solicitor will check the ownership of the property alongside any outstanding mortgages or debts involved.

2. Contact Lender if Mortgage Involved

If there is a mortgage, the lender will need to be contacted and provide permission for the equity transfer to go ahead. Having a mortgage will typically increase the amount of time the entire process takes by several weeks, depending on whether the lender is happy with the changes or not.

3. Valuate Property

An up-to-date valuation of the property will also likely be required to calculate the share owed to each party. 

4. Submit Documents to the Land Registry

Once the solicitor has prepared all the relevant documents, they will need to submit them to the Land Registry to update their records. 

5. Contact Home Insurance

At this stage, the property owner should contact their home insurance provider to update their policy to reflect the new ownership.

Equity Transfers: Final Thoughts 

A transfer of equity can be an important step to take in a variety of situations to ensure an individual’s property and financial interests remain secure.

Want to learn more about how to get an equity transfer? 

Here at Jordans Solicitors, we are professional and friendly solicitors, proud to provide support for Equity Transfer applications. For legal assistance services you can trust, get in touch with us today.