What is a Transfer of Equity?
A Transfer of Equity or Transfer of Title is when someone is added or removed from ownership of a property. For example, one owner adding a husband or wife, or a parent adding a son or daughter. It is frequently done when couples separate, and one of them is taken off the property ownership.
The Transfer of Equity procedure.
The exact procedure depends on the individual circumstances of the situation and type of transfer. It will always include completing a transfer deed, and may, if mortgage lenders are involved, mean paying off one mortgage and dealing with the incoming mortgage lender’s requirements. If adding a person to the title, it may also be wise to consider whether a deed of trust is required.
What is Stamp Duty Land Tax (SDLT) and does it need to be paid?
You have to pay SDLT when you buy a residential property or a piece of land and the cost of the property is over a certain value. Put simply, SDLT is a tax charged on land transactions and paid to the government. It is not a conveyancing fee, although your solicitor will usually act as your agent in collecting the money to pay the tax from you and paying it to the government when your transaction completes.
The tax applies to houses, flats and land properties. In some kinds of Transfers of Equity – SDLT has to be paid. If you are unsure whether this applies to your transfer you can visit the Government website here.
Also, you may still need to pay SDLT in a Transfer of Equity as you are gaining part of the legal ownership of the property.
If you are looking for a solicitor to help with a transfer of equity please contact us by phone or by using our contact form.