A transfer of equity is where the owner of a property transfers equity in that property to another person. The equity refers to the value of the property AFTER any mortgage and any other loans against the property have been paid.
Why would I transfer equity in my property to another person?
You may decide to transfer equity if:
- You have recently married or entered into a civil partnership and wish to put your partner’s name on the title.
- To assist with tax planning.
- You and your partner have decided to separate
What happens if there is a mortgage on the property?
If there is a mortgage on the property you will need to obtain the mortgage lender's permission and also ensure that the person you are transferring the equity to is named on the mortgage document. If there is no mortgage on the property and no money is changing hands then the transfer of equity process should be more simple and straightforward.
Will I need to pay Stamp Duty?
Stamp duty land tax may be applied when property is transferred in exchange for anything of monetary value (called a ‘consideration’). If the consideration is greater than the current threshold of £125,000, then stamp duty will have to be paid. You do not have to pay stamp duty in the following circumstances:
- If there is no consideration.
- If the property is being transferred in a divorce or dissolving of a civil partnership.
Come and talk to our experienced team and we will ensure your transfer of equity is completed smoothly and efficiently. We are able to manage this process online which will lower your cost and decrease the time it takes to complete the transfer of equity.
Call us on 01444 235 232 or fill out our contact form and someone will come back to you within 24 hours.