What is a Transfer of Equity?
A transfer of equity occurs when a party is removed, or added to/ from the title deeds to a property, this can either be for monetary value or nil consideration.
Why would a Transfer of Equity occur?
A transfer of equity may occur for various reasons. For example, if a couple are separating, they may wish to transfer one person from the title deed– perhaps the incoming owner is taking on responsibility for the mortgage or a new mortgage may need to be arranged alongside the transfer, or, perhaps you just simply own a property with family or friends and the time may come to 'buy them out'.
What is the process for a Transfer of Equity?
Each Transfer is different and there is no 'one size fits all' approach. Please see below the process for a standard Transfer of Equity;
- Obtain a copy of your title deed – In order to start the transfer process we will need to obtain a copy of your title deed to check for any restrictions or mortgages currently registered – your title deed will also clearly state who currently owns the property.
- Mortgage consent or mortgage offer (if applicable) – If you are transferring ownership and you currently have a mortgage on the property, you are required to either obtain a new mortgage offer (to repay your existing loan) or, obtain mortgage consent from your current lender.
- Order searches or search insurance – If you currently have a mortgage on the property, or you are obtaining a new mortgage, we will need to ascertain whether your new lender requires property searches or whether they accept search insurance.
- Prepare the transfer deed – We will then draw up the transfer deed for signature. Depending on whether you have a mortgage you may also be required to sign a mortgage deed. If you are obtaining a new mortgage we will also review your new mortgage offer at this stage.
- Pre-completion searches – We are required to obtain the relevant Land Registry searches which will 'freeze' the title of the property, meaning that no alterations are able to be made to your title deeds and our Transfer will take priority.
- Obtain redemption statement/ request new mortgage monies (if applicable) – On completion we will then repay your existing loan with your new mortgage advance.
- Completion – We will then arrange to register the transfer of ownership at the land registry along with the new mortgage (if applicable) and provide you with a copy of your updated deed once received.
How long does a Transfer of Equity take?
The process/ timescales can depend upon the circumstances, each transaction is unique and timescales do vary greatly.
Please feel free to contact Chattertons and we will be able to assist with any queries you may have relating to your individual situation and timescales.