Congratulations, you finally tied the knot. As a married couple, you may want to share what’s his and what’s hers, or known as co-owning properties. But how do you do that? This is where the transfer of equity comes in. Transfer of equity is the transfer of ownership of a property to either yourself or another person, say, your spouse. Below, let’s take a deeper look at how this works.
What is a transfer of equity?
A transfer is defined as the change of ownership in an asset, while equity refers to the property you own. In a transfer of equity, you either add or remove a person to the legal title or deeds of a property. This is also known as property transfer.
Reasons for a transfer of equity
There are various reasons why you would transfer equity. One is when you get married and want to co-own your spouse’s properties. Other reasons include separation from a partner or spouse, or when adding a child or a family member to the property ownership.
How does it work?
Typically, a transfer of equity is simple. You and your spouse just have to fill out a form. When you both signed, a solicitor from firms in London files the form to the Land Registry. If the transfer of equity doesn’t come with a mortgage, the processing time will only take a few days to complete.
However, there are also instances wherein a transfer of equity gets complicated. An example of this is the previously stated presence of a mortgage in the transfer. Complicated situations can prolong the process, so it’s best to always ask the help of a solicitor. He will then act on your behalf for both the transfer of equity and your mortgage case.
How much does equity transfer cost?
The cost of equity transfer depends on your situation. If there are no conditions such as a mortgage, the process will cost you between £195-£580 on average. This applies for properties whose consideration value is £50,000-£100,000. Consideration refers to the amount of both the equity and the value of the mortgage together.
Also, keep in mind that there could be additional costs when you make the transfer. For instance, you might be charged a Stamp Duty or a Captial Gains Tax fee. This depends on the situation, and your solicitor can tell you which fees to pay.
Equity transfer done, now what?
Once the form is approved on the Land Registry, congratulations. The property is now formally registered under your and your spouse’s names. This means you own the property equally.
See? Transfer of equity doesn’t have to be complicated. It actually involves a simple process when there are no conditions like a mortgage present in the transfer. You only need to fill out a form, send it to the Land Registry, and wait for the approval.
Anyhow, you can always ask the help of solicitor firms in London if things get a bit complicated. They are expert in the job that can get you and your spouse sharing the property in no time. You may have to pay, but it’s worth it in exchange for the convenience their service can provide.