Transfers of equity can take place in several 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 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.
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:
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 directly throughout.
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