When property ownership is changed, for example, from joint names to a sole name or vice versa, Stamp Duty may be payable on the value of the amount transferred. We look at how the process works and when transfer of equity Stamp Duty is due.

At Lockings Solicitors, we deal with all types of property transactions for clients in East Yorkshire and beyond. We have many years of experience, including in dealing with complex transfers and handling legal complications.

If you would like to transfer a part share in a property, contact us today and we will be happy to help.

We offer a FREE initial chat so that you can ask us any questions you may have about transfer of equity Stamp Duty. Call us on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire area and beyond.

Understanding transfer of equity

Transfer of equity refers to a change in the names on the title deeds of a property, generally when a sole owner adds a new co-owner or a joint owner has their name removed, transferring their interest to the remaining owner.

You should ask a solicitor to represent you in the transaction, to ensure that the transfer is carried out correctly, that the type of ownership is right for your circumstances and to advise you on the legal implications.

A solicitor will also be able to deal with the financial aspect of a transfer of equity. This could be a new joint owner buying in, payment to a joint owner who is leaving the property or handling an existing mortgage or remortgage.

Why transfer equity in a property?

The most usual events that result in a transfer of equity are when a couple decide to live together and one of them already owns a property that they want to hold jointly, and when a couple separate and one buys the other out.

Is Stamp Duty payable on transfer of equity?

If the value of the percentage interest in the property that is being transferred is above the Stamp Duty threshold, then Stamp Duty will be payable, with some exceptions. Stamp Duty is not payable when a transfer is as a result of an agreement or court order made as part of a divorce or civil partnership dissolution.

Similarly, if the transfer is a gift, then Stamp Duty will not generally be payable.

However, if the transfer is because you are marrying, entering into a civil partnership or moving in with someone, then Stamp Duty will usually be payable if the value of the share of the property transferred exceeds the Stamp Duty threshold.

How much Stamp Duty is paid on transfer of equity?

From 1 April 2025, Stamp Duty is payable on the value of the transfer above £125,000. This figure is the Stamp Duty threshold. Prior to 1 April 2025, the figure was temporarily set at £250,000.

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In some circumstances, Stamp Duty may be payable even if no money changes hands. For example, if a property is valued at £700,000 and you and the new owner will be taking out a mortgage of £600,000, with each of you taking responsibility for £300,000 of the loan, the new joint owner will incur Stamp Duty on the transferred sum over £125,000, ie. on 175,000.

Rates are as follows from 1 April 2025:

If an unmarried couple separates, with one party buying the other out, then Stamp Duty will be payable on any portion of the sum transferred that is over £125,000.

If you are not sure whether Stamp Duty will be payable in your case, call us today and we will be happy to discuss the situation. We can also go through how much Stamp Duty is paid on transfer of equity.

Do I need to be represented by a solicitor in a transfer of equity?

It is important to take advice from a solicitor before transferring any interest in property. As well as making sure that the transfer is correctly drafted and that any Stamp Duty is paid, a solicitor will check that the transfer is the best option for you.

If a property is being transferred into joint names, you will also need to decide which type of joint ownership is right for you. This will be either:

• Joint tenants; or
• Tenants in common

Ownership as joint tenants means that you will both own the whole property together, and neither of you will own a specified share. If one of you were to die, then the other owner automatically holds the entire property. This means that you cannot leave your share of the property to someone else in your Will.

If you hold a property as tenants in common, each owner holds a set share. For example, if one of you has put more money into the property, then ownership could be split 75:25.

In the event that a tenant in common dies, their share forms part of their estate and goes to the beneficiaries named in their Will or those entitled to inherit under the Rules of Intestacy.

As well as dealing with the transfer, a solicitor can also ensure that you have a valid Will in place that adequately deals with your property interests.

If the property that is being transferred is subject to a mortgage or you will be taking out a new mortgage, then you will have to have a solicitor to deal with this aspect of the transaction as well.

The solicitor will draft the transfer document, provide you with advice on the transfer and liaise with the lender, providing them with the legal and other information they will need before they are prepared to lend. At Lockings Solicitors, we are on the panels of approved solicitors for all major high street lenders.

Once the transfer is finalised, the solicitor will then register the transfer with the Land Register.

How long does it take for a transfer of equity?

If the property is subject to a mortgage, you will need the lender’s consent to a transfer into a sole name. If you are putting a property into joint names, you will usually need to make a joint application for a new mortgage if you need finance.

Most of the other transfer work can be carried out while the lender processes the mortgage application, so the length of time taken will depend on how busy the lender is and how quickly they are able to issue the mortgage approval or offer.

Contact our East Yorkshire transfer of equity solicitors

If you would like to discuss transferring a property or find out how much transfer of equity Stamp Duty is, call us today and we will be happy to help.

You can ring us for a FREE initial chat on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire area and beyond.