– Department is headed by Mr Sreekumar Narayanan
Transfer of equity involves adding or removing someone from the title of a property. The need for a transfer of equity often arises after marriage, separation, or even as part of estate planning. Phoenix Lawyers has extensive experience in handling all types of transfer of equity matters. Thus, we can easily guide you through the process and assist you in preparing the relevant documents.
Here’s an overview of the process:
- Obtain Mortgage Lender Consent: If there is a mortgage on the property, the lender’s consent is required. The lender may impose conditions or refuse consent.
- Consider Tax Implications:
- Stamp Duty Land Tax (SDLT): Depending on the value of the equity being transferred, the relationship of the parties, and any outstanding mortgage, SDLT may be payable.
- Capital Gains Tax (CGT): If the property has increased in value since purchase, CGT may apply to the person transferring their share, unless it was their main residence.
- Inheritance Tax (IHT): If the transferor retains an interest in the property, it could be considered a ‘gift with reservation of benefit’; and subject to IHT.
- Legal and Beneficial Ownership: The person added to the title becomes a legal owner. The division of beneficial ownership should be clearly set out in a Declaration of Trust if necessary.
- Execution of Documents:
- Transfer Deed (TR1): Both transferor(s) and transferee(s) must sign the TR1 form in the presence of a witness.
- Mortgage Documents: If a mortgage is involved, any required documents must be executed.
- Completion:
- Dating of Documents: On the completion date, the signed TR1 forms are dated.
- Payment of Consideration: Any consideration (money) is transferred to the outgoing party’s solicitor.
Post-Completion Steps:
- SDLT Payment: If applicable, SDLT must be calculated and paid, with a return submitted to HMRC within 14 days.
- Land Registry Application: Submit the completed TR1 form and other required documents to the Land Registry to update the title register.
Notification:
- Mortgage Lender: Notify the lender of the transfer, providing a copy of the updated title register if required.
- Landlord: For leasehold properties, notify the landlord or managing agent, which may involve sending a notice of transfer and paying a registration fee.
- Final Checks and Documentation: Ensure all documents are in order, fees are paid, and all parties are notified. The solicitor will provide the updated title register to the client and any lender.
The transfer of equity is completed once the Land Registry updates the title register to reflect the new ownership structure, and all financial obligations are settled.
Why Choose Us?
Focused on making the process as simple as possible for you.
Expertise in handling transfers of equity smoothly.
Efficient management of lender consent and legal paperwork.
Clear communication and transparent advice.