Whether you are transferring a property to a family member or making other changes to the ownership of the property by adding or removing a person from the title, you will need to execute a transfer of equity deed. Here we will look at four of the most frequently asked questions about the process.
1. What is a transfer of equity and when might I make one?
Transfer of equity involves removing someone from or adding someone to the ownership of the property on the title deeds. It is different from a straight sale, as at least a part of the original ownership will remain in place.
It can arise in a number of circumstances, such as when a divorce takes place between joint owners or when a new relationship is established and an owner wishes to include their new partner on the deeds of the property. Tax efficiency and buying out a friend are other examples.
2. How long will the transfer of equity process take?
A simple transfer can take as little as 4-6 weeks. However, each transfer can have its own issues. If there is an existing mortgage or divorce proceedings, then expect delays. Naturally, you will need legal advice from a transfer of equity solicitor and you will find information and help online at sites such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor.
3. Is stamp duty payable on a transfer of equity?
There are other factors which can impact whether or not stamp duty becomes payable, depending on the circumstances in which the transfer of equity takes place. For example, no stamp duty is payable after divorce or when the property is gifted, as no monetary value has been exchanged.
4. What are the costs of a transfer of equity?
The major direct costs are your equity transfer solicitor’s fees and the Land Registry fee. There may be other disbursements if a mortgage is still in place on the property and stamp duty may apply.