To start a Transfer of Equity you will first need an official copy of the title for the property. This will be used to check if there are mortgages on the property or any other restrictions that might be involved.
Your conveyancer will then:
- Review the title deeds or property deeds
- Check the identity of the clients
- Prepare the transfer deed
The next steps depend on whether or not there are any mortgages on the property.
- If there are no mortgages on the property, the existing and new owners of the property sign the transfer deed in the presence of a witness and the conveyancer registers the transfer deed at the Land Registry. A Stamp Duty Land Tax certificate is needed if the value of the transaction is above £40,000.
If there is a mortgage on the property, you will also need the consent of the mortgage lender to go ahead with the transfer.
This is because if you are adding someone to the title, they will become equally liable for the mortgage. You should also be aware that Stamp Duty Land Tax may be charged on the amount of the outstanding mortgage debt. Please contact us for more information.
Equally, if you are removing someone from the title, they will pass their liability on to the remaining owners of the property. The mortgage lender will want to check that remaining owners are able to maintain mortgage payments before agreeing to the transfer.
Your conveyancer will contact the mortgage lender and request written consent to the transfer. The mortgage lender may want to change the terms of the mortgage before consenting. Once written consent is received, the process can continue as above.
If the mortgage lender does not agree to the transfer, you will need to repay the mortgage before you can go ahead with the transfer. This can either be with a cash payment or a remortgage with a different lender who agrees to the transfer.
To find out more about the process, or to set it in motion yourself, either call us on 0370 1500 100 or fill in our contact form and we will call you back.