Whether you’re looking to change ownership of your property or remortgage your existing mortgage following a transfer of shares – the combination of a transfer of equity and remortgage can help you achieve the outcome you’re looking for.
While each transaction is viable on its own, in this article, JP Goldman dives into the inner workings of the transfer of equity and remortgage process.
What is a Transfer of Equity?
The transfer of ownership in a property is also known as a transfer of equity. While it is a relatively simple process, you will require your lender’s consent (if there is a mortgage on the property). Additionally, your lender will need to instruct a solicitor.
Here’s what you need to know in relation to a transfer of equity:
What circumstances call for a transfer of equity in a property?
Circumstances include a wide range of common scenarios.
This includes When an existing property owner adds or removes one or more individuals to the title (or ownership) of the property such as:
- Adding a new spouse, civil partner or unmarried partner to your deeds
- Gifting a property (or property share) to a child, spouse, civil partner or other member of the family
- Buying out a joint owner
- Selling a share in your property
How does a transfer of equity work?
If you’re considering a transfer of equity, please contact JP Goldman to discuss your unique situation.
In general, when transferring equity, your solicitor must review the property’s title documents, prepare the transfer deed and other documents, obtain lender consent (and any other related consent), register the Deed of Transfer and complete the stamp duty land tax return form (even if no tax is payable).
How long does a transfer of equity take?
Please contact us to discuss the details of your situation. While each transaction is different, it usually takes 4-6 weeks to complete the transfer of equity process.
Do you need to instruct a solicitor for a transfer of equity?
Transferring property in England and Wales is a complicated process. Moreover, a property transfer may have several tax implications, including capital gains tax, stamp duty land tax, and inheritance tax. While the transfer of equity process is relatively straightforward – opting to conduct your transaction through an experienced solicitor can mitigate any legal or tax exposure.
What is a Remortgage?
A remortgage is the process whereby you take out a new mortgage with a lender while redeeming your existing mortgage.
There are many scenarios where you might consider a remortgage, including to get better pricing, consolidate loans, and release (or transfer) equity in your property. The most common reason for remortgaging is to reduce monthly repayments on your mortgage. However, you’ll need to weigh any potential savings against outgoing like early redemption fees, arrangement fees, valuation fees and other fees.
You’ll need to appoint a conveyancing solicitor if you’re also considering a transfer of equity.
If you’re considering a transfer of equity and remortgage, please contact JP Goldman’s conveyancing solicitors.