Set out below is our guide to the legal aspects of transfering equity. You can
scroll down to read or click one of the links below to go straight to the
relevant section.
Overview
Transfers of equity often take place when there is a change in relationship
status. Quite often when a relationship breaks down any property, which has been
jointly owned, will be sold or one party will agree to sell their interest to
the other. Alternately, transfers of equity can take place on marriage or when a
relationship develops to a point where you choose to formalise your “property
owning relationship” by moving the property into joint names.
Transfer of Equity
- If there is to be a sale of one half of the property then both parties must
agree on the value of the property and the amount that is outstanding on any
mortgage must be taken from that valuation and the remaining amount is the
equity.
- In many cases the party who is buying the other party’s interest in the property
will have to arrange with the lender or mortgage provider for additional
borrowing and will have to rearrange their finances, or even remortgage the
property in its entirety in their sole name with a new lender to raise the
additional funds.
- • The amount to be paid under the
transfer will have to be agreed between the parties and once approval has been
received from the existing lender or from a new mortgage provider the transfer
documentation can then be prepared.
- If you are staying with the same lender and just changing the names on the
mortgage then you just need to instruct us to undertake a transfer of equity.
Remortgage
- • Not all transfer of equities take place when there is a breakdown of
relationship. It may well be that the property was purchased in a sole name and
you wish to gift half of the property to a partner or spouse and may wish to
transfer the mortgage into joint names or re-mortgage the property into joint
names
- • If you are applying for a mortgage with a new
Lender (i.e. re-mortgaging) then you need to obtain a quote for a re-mortgage
and transfer of equity and not two separate quotes, one for a re-mortgage and
one for a transfer of equity – as there is an online discount for both together.
-
The procedure is simple, for a transfer of equity with a re-mortgage then for
full details see our re-mortgage section. The
additional work is the preparation of the transfer documentation and statutory
declaration (if appropriate) which will be sent to the you and the other party
at the same time as receiving either a mortgage offer or confirmation from the
existing Lender in relation to the transfer of the existing mortgage product.
Completion of the transfer of equity will take place at the same time as the new
mortgage or transfer of existing mortgage takes place.
We understand the need to sort out your financial matters in a prompt and
professional manner. Instructing PM Law’s Conveyancing Department couldn’t be
easier. Simply enter your details on the
online quotation form and we will give you an immediate quote
Get
a Transfer of Equity Quote
Get a Remortgage and
Transfer of Equity Quote
TOP