Transfers of Equity
What is a transfer of equity?
A transfer of equity is the transfer of a persons share in a property to someone else. It could be that a person is either added on to the title of the property or removed from the title of the property.
The net value of the property (after taking off any money owed such as a mortgage) is called the equity. A transfer of equity is the process whereby the current property owner relinquishes either a part or their whole stake in a property and transfers ownership to someone else.
Transfers of equity take place for many reasons. Some of the most common examples are listed below:
Divorce or Separation
When a couple divorce or separate, the partner leaving the property often wishes to have their name, and legal liability for the property, removed. In some circumstances this will involve a cash payment being made, ie the person retaining the property will buy the other persons share out. This financial settlement will usually be worked out as part of a divorce settlement.
When a joint mortgage is in place on the property, the mortgage company’s consent will be required before someone can relinquish their liability to that mortgage and their name can be removed.
Marriage or living together
The new partner or spouse may take part ownership of a property which was previous owned in the other person’s sole name.
In some circumstances it can be beneficial for tax planning purposes to transfer ownership of a property, or part of a property, into someone else’s name, for example the owners children.
Here at Sheppersons Solicitors we can advise you on all aspects of Transfers of Equity. We have carried out a large number of these types of transactions and we will guide you through the process with clarity.
Please contact us for a no obligation consultation.
Conveyancing Quality Scheme
After an intensive and detailed assessment we have been awarded the Conveyancing Quality Scheme accreditation by the Law Society.
The accreditation is recognition for our commitment to providing an excellent service to clients, value for money and a professional approach.