Conveyancing issues can sometimes seem confusing and difficult to deal with. However, with the right legal support, it can be a straightforward process. If you are in the Greater Manchester area, Blackburn solicitors can assist you with any conveyancing problems or needs that you may have.
What is transfer of equity?
Some conveyancing terms seem to be hard to understand. Transfer of equity is simply the legal term for transferring ownership of a share or interest in a property from one person to another.
When you transfer equity, you are legally changing some or all of the ownership of your property. The transfer of equity process essentially adds or removes someone to or from the title deeds of the property. You might want to do this for several different reasons. For instance:
- Your living arrangements are changing – maybe your spouse or partner is moving in or you’re getting divorced and one of you is moving out.
- You want to gift some of the equity to a family member, for example to your children.
- You’ve received a court order that has instructed you to do so.
- A financial advisor has recommended transferring your share for some financial benefit.
The term ‘equity’ can seem confusing, but it is simply the value of the property with any outstanding mortgage subtracted. If you co-own or intend to co-own a property, then you split the equity value, not the overall property value.
What is the transfer of equity process?
Each transfer of equity process will differ, depending on your situation.
Generally, the process includes the following steps:
- Your conveyancing solicitor will request an official copy of your property’s title documentation. This is held by the Land Registry, which safeguards land and property ownership.
- Your conveyancing solicitor will review and verify the document then prepare the ‘transfer of equity deed.’
- The document is then checked for all outstanding mortgages in the property
- If the property has a mortgage, the mortgage lender also needs to agree to the transfer of equity. That’s because the person added to the property title becomes responsible for the mortgage as well. If the property ownership is being transferred to one person, they will become responsible for the mortgage on their own.
- If there is no mortgage – or once the lender has agreed – the property’s existing and new owners can sign the transfer of equity deed in front of a witness.
- Your conveyancing solicitor can then register the transfer of equity deed with the Land Registry.
How long will this take?
A straight-forward transfer of equity generally takes between four and six weeks, however it could take longer due to the fact that every transaction is unique. One example of this could be when a mortgage is open on a property, and the process therefore takes more time while you communicate with your lender.
There are a number of different things that you could need the help of conveyancing solicitors Manchester/Blackburn for, such as buying and selling property, as well as buying new builds, re-mortgaging and buying through the Right to Buy scheme.