The transfer of equity is the legal process that is used to add or remove a person from the title deeds (ownership) of a property. There is no sale involving the property and, at minimum, one of the original property owners remains on the title deed.
There are many reason why you might want or need to complete the transfer of ownership of a property, including:
A relationship breakdown. If a couple separates, assets will need to be divided up – a home is normally the most significant one.
A new relationship. You might have bought the house on your own and then later entered a relationship. A transfer of equity agreement could add your new partner to the title deeds.
Buying out a co-owner. More people are buying properties with friends or family to get on the property ladder. There may be a time later on to buy them out.
For tax purposes. Home owners sometimes transfer equity to their children or other family members to be more tax efficient. It can be seen as a gift, but always seek advice about your tax liabilities.
In instances when all parties involved are agreed on the outcome, equity transfers are straightforward. However, it is important to look at every transfer individually, as it can become more complicated when there are mortgages or disagreements involved. This is something our residential property solicitors can help you with.