If you’re in possession of equity of some kind, perhaps property or shares for example, you may want to know how easy it is to transfer this safely and legally to another individual. This question is often raised in relation to property transfers and handled by a transfer of equity solicitor. In this blog, we’ll cover what you need to know.
What is equity?
In the context of most transfer of equity processes, the type of equity referred to is in property. Equity in a home or investment property means the proportion of the property owned outright, aka what it is worth less any outstanding value.
How is equity transferred?
A transfer of equity solicitor such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor will do this by working through a process that adjusts the names listed on the title deeds of the property. This ensures that the ownership of the property is shared according to the original owner’s wishes. The process can be complicated because it has implications for the Land Registry, for outstanding mortgage payments and for stamp duty liabilities, which is why the process should be handled by a lawyer.
Why is equity transferred?
There are many reasons that equity might be transferred on a legal basis. The most common include adding a partner, handling a divorce or separation, buying out owners or gifting equity.
What does a conveyancer do in this process?
A transfer of equity solicitor, or conveyancer, will work through the detailed technical considerations of this route and work closely with the client to assess the individual circumstances and give the right advice so that the resulting transfer is legally compliant. This includes navigating legal queries, preparing documents, updating the Land Registry, explaining the implications of tax, engaging with lenders, and advising on financial settlements.
How long does it take?
A good transfer of equity solicitor can usually help to get the process completed in 4-8 weeks, but this will depend on various factors including the complexity of the transfer, any mortgage lenders, and also the willingness of those involved to participate in the process.
In conclusion, it can be complex to transfer equity and it is rarely a completely quick and simple process. But with the right transfer of equity solicitor, the process can be handled as quickly and efficiently as possible to ensure that it is legally compliant and enforceable.