A transfer of equity occurs when one or more joint owners of a property transfers or sells part or all of their equity in that land to another.
Transfer of Equity Upon Entering A Marriage or Civil Partnership
Many people choose to transfer the equity they have in a home they owned before they got married to their new spouse. This can be made as a gift and no money needs to change hands. If you have a mortgage you will need to obtain the lender's permission to put your partner’s name on the mortgage deed.
Transfer of Equity Divorce
If you or your partner decide to divorce and one of you wishes to remain in the family home there will have to be a transfer of equity between both parties. It is likely that you will need to organise and pay for a valuation of the home you own together so you can buy out your ex-spouse’s share of the property.
You will need to prove to the mortgage lender that you can:
- Afford the mortgage payment on your own; and
- Be able to meet the payments on additional loans needed in order to raise the capital to buy out your ex-partner’s equity.
Things can become tricky when negotiating the transfer of equity during a divorce. There may be disputes as to the value of the property and the share of the equity each party is entitled to.
Stamp duty is not payable on the transfer of equity resulting from a divorce or dissolution of a civil partnership. However, if an unmarried couple separates then stamp duty may be payable on the consideration (payment) made on the transfer of equity.
Why Choose Us to Organise Your Transfer of Equity?
At Bennett Oakley Solicitors we can offer you full, easy to understand advice on transferring the equity of your property. We are aware that in the case of a divorce or dissolution, emotions may run high between parties. We promise to deal with your situation in a sensitive manner and look after your best interests at all times.
To contact us to make an appointment you can phone 01444 235 232. Alternatively you can fill out this form and someone will be in contact with you shortly.