Adding or removing someone to the ownership and title deeds of a property is a process known as ‘transfer of equity’. It occurs when one or more persons remain in ownership of the property, as opposed to a whole transfer that occurs when buying or selling a home. It is a legal process that is recorded by the land registry and should be carried out with the help of a solicitor.
What is equity transfer?
Essentially, it is the process whereby an individual is added or removed from the deeds and ownership of a property. It may be that single ownership becomes co-ownership, or perhaps the other way round. Transfer of equity can occur with both residential and commercial property.
Reasons for equity transfer
The most common reason for equity transfer is when an individual wishes to transfer equity to a new husband, wife, or partner, making them co-owners. However, other reasons include parents transferring equity to their children, or removing a spouse from the ownership after a divorce. Transfer of equity is also commonplace in business. For example, it may be necessary when a new partner joins the business and equity of the premises is transferred to them.
When to seek legal support for equity transfer
It is always advised to seek legal support in order to carry out a transfer of equity, and usually essential when a mortgage is involved. The https://www.parachutelaw.co.uk/transfer-of-equity-solicitor transfer of equity solicitor will explain every part of the process to you, and be on hand to answer any queries The solicitor will also be responsible for drawing up the papers that you need to sign. It’s important to note that the person who is being added to the ownership is the person who needs legal representation, not the person who is already on the deeds. However, it’s generally advisable for both parties to have legal support.
The equity transfer process
The process for equity transfer is typically as follows:
1: Provide your solicitor with a copy of the title deeds.
2. Wait for your solicitor to prepare the transfer documents.
3: Inform the mortgage lender and any other relevant third parties.
4. Provide any documents required of the mortgage lender and wait for approval.
5: Sign the documents.
6: The transfer of equity has been completed, and your solicitor will inform the land registry.
How long will the transfer equity take?
The quickest turnaround for transfer equity is around four to six weeks. However, numerous factors might cause a delay.
Why is the transfer taking so long?
The biggest hold-up to the transfer of equity process occurs when the property is mortgaged. The reason for this is that the lender has to approve the equity transfer. The lender may need proof that the new owner can afford the mortgage. The transfer of equity for a property that is not mortgaged is a simple, quick process. Other reasons for a delay include removing someone from ownership after a divorce. This is because the process can be held up even further by other legal proceedings. A transfer of equity solicitor will always be able to keep a client informed of any delays and help avoid them.
The benefits and reasons for a transfer of equity are varied, and it’s certainly become more and more commonplace. The transfer of equity can be a fast and simple process, especially if the property is owned outright. Contacting a solicitor is an essential first step in getting the transfer of equity process started, as well as for keeping things on track and answering any questions.
