Properties are transferred in a variety of different situations – most notably where a property is sold. However, there are also a variety of situations where there may need to be a transfer of equity in the property. This article will firstly identify situations where a transfer of equity may be required and then to look at the costs that are associated with a transfer of equity. Transfer of equity costs will naturally vary from transaction to transaction, and some of these variables will be identified to encourage transparency and understanding before the transfer of equity process begins.

Why Transfer Equity?

The legal owners of a property are recorded on the Land Registry. It has been a requirement for the legal owners to be registered since 2002, and therefore most properties will now be part of the electronic land registry database.

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However, the equity, which is the part of the property that may be actually owned by the individuals, is not subject to mortgage and can be transferred for a variety of reasons. For example, changes within the family mean that a new partner could be considered to have rights over a property, or where there is a divorce or separation one party could be removed as an owner. This could also occur where there is a gift of a property or where the way in which the property is held is to be changed.

What Are the Transfer of Equity Costs?

Transfer of equity costs will vary depending on the variety of different factors – most notably the reason for the transfer of equity costs, the number of individuals involved and the value of the property. Additional complications and work will be required that will increase the transfer of equity costs where there is a mortgage to deal with and permissions to gain.

A reputable solicitor will provide transparency about the costs that they are likely to charge for various different types of transfer of equity https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-cost. As well as the transfer of equity costs themselves that will be charged by the professionals, there are additional costs which will be taken into account. For example, if occupiers’ consent is given, then it is likely that independent legal advice will be needed. Other transfer of equity costs include registration charges, stamp duty and third-party costs from the lender.

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A breakdown of these additional transfer of equity costs should be obtained at the earliest possible opportunity so that expectations can be managed and there are no unexpected costs to be incurred in order to get the transfer completed correctly.