Transfers of equity can take place in a number of different circumstances for instance as a result of a marital break-up, a cohabitee break up, where a party no longer wants the liability of a mortgage or if one needs to urgently raise money and a joint owner doesn’t have the best credit scoring which can affect / disadvantage a new mortgage application.
Transfers of equity don’t just involve removing someone’s name from the title of a property and the mortgage (if applicable) but they can also involve adding on one or more names. If the ones being added onto the title are not paying any money (consideration) for this then you wouldn’t be liable to pay any stamp duty land tax. If however monies are being paid then there could be a tax liability so please contact us if you would like to query this.
It should be borne in mind that if someone is registered on a property’s title (with a legal (equitable) interest), they must also be on the mortgage.
Keeping the Same Mortgage Product
Some like to carry out transfers of equity and keep the mortgage that they already have as they don’t want to lose the product that they are on as it suits them the most.
In these circumstances the mortgage lender needs to be contacted either by yourself or with the assistance of a mortgage broker who will then carry out affordability checks (amongst other things) to ensure that whoever is being left on the property’s title earns enough money each month to cover the mortgage payments by themselves.
It is not compulsory for you to remortgage your property to be able to transfer the title unless you need to raise additional substantial funds and are happy for them to be secured on the property. In order to work out which option is best suited to you, you could start off by carrying out the following:
- Compare the rates of your current mortgage and the products currently available on the property market;
- Check if your current mortgage is subject to an early repayment charge;
- Compare the arrangement fees on new mortgage products and check with your current lender if they will charge you one if you stay with them;
- Compare the lenders’ valuation fees;
- Check for any “cash back” incentives and any other incentives offered by new lenders.
Ola Leslie Solicitors have been dealing with all types of transfers of equity for years and have a vast knowledge of most lenders’ timescales and procedures. We don’t believe in using jargon to unnecessarily confuse you; we keep things simple and proficient and offer all of our standard conveyancing services at a reasonable fixed fee.
By instructing Ola Leslie Solicitors you will have the peace of mind that although you are receiving your service at a fixed fee, you will have a qualified solicitor dealing with your matter and will be communicating with you throughout.
We are Transfer of Equity Specialists
Ola Leslie Solicitors