A transfer of equity is a transaction that changes who legally owns a property or what proportion of a property they own. The equity in a property is the value that remains after any mortgage or other charges have been taken into account. A transfer of equity therefore transfers the ownership of that remaining value in the property.
Such a transfer may be necessary in a variety of circumstances, for example:
- to add another owner to the title of the property, e.g. after marriage
- to remove an owner from the legal title of a property, e.g. after divorce or by an order of the court
- creation of a trust
- property given as a gift.
Where there is a mortgage on the property the change in ownership of the property will need the consent of the lender and to be reflected in the mortgage deed – we can assist with this.
If you wish to transfer the equity in your property for inheritance tax purposes then our Wills, Tax and Probate team will be happy to help.