If you are moving in with someone or going through a separation, you may want to transfer a share of a property so that it is held in joint names or your sole name. This process is known as a transfer of equity. We answer the question, Do both parties need a solicitor for transfer of equity? and explain when it is necessary.

At Lockings Solicitors, we routinely represent clients in property transfers and related matters, ensuring they have the advice and guidance they need and dealing with issues such as finance and registering ownership into a new name or names.

We have been helping clients in the East Yorkshire area for many years and have the experience to handle complex transactions. If difficulties arise, we have the expertise to resolve them promptly, and we always work to reach completion as quickly as possible.

We offer a FREE initial chat so that you can ask us any questions you may have about transfer of equity. 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.

What is a transfer of equity?

A transfer of equity takes place when a property is transferred from a sole name into joint names or from joint names into a sole name.

A transfer document will be drafted and signed and the change in ownership is then registered at the Land Registry.

It is common to tie in a transfer of equity with a remortgage.

When is a transfer of equity needed?

You may need a transfer of equity if your relationship status has changed. For example, you may be going through a divorce and need your shared home transferred into your sole name or the sole name of your former spouse.

Alternatively, if you are moving in with someone, you might want your property put into your joint names.

Do both parties need a solicitor for transfer of equity?

Whether you are having a property transferred to you or you are transferring your share to someone else, you need a solicitor to represent your interests and ensure that the transaction is right for your circumstances.

Situations when you will need independent legal advice on a transfer of equity include:

• Advice and representation if you are separating and giving up your share in a jointly owned property
• Advice on the different types of ownership if you will be owning jointly with someone else
• Due diligence work if you will be buying a share in a property
• Advice on protecting your interests if you will be owning a property jointly
• Representation in taking on a mortgage
• Releasing you from a mortgage if you will be transferring a property out of your name
• Related issues, such as putting the right Will in place

Advice if you are giving up your share in a property

If you will be transferring a property out of your name, we can represent you in ensuring that you receive the agreed payment for your share. We will approve the transfer and once it has been signed, hold it until the transaction completes and any transfer monies are received.

Advice on joint property ownership

When property is jointly owned, there are two different ways in which it can be held:

• As joint tenants; and
• As tenants in common

When a property is owned as joint tenants, both parties hold the whole of the property, with neither having a specified share. Should one person die, the other automatically owns the property.

If a property is owned as tenants in common, each party owns a specified share, for example, 25%. This share will pass to their legal beneficiaries in the event of their death. This is either those named in their Will or, if they have not left a Will, those entitled to inherit under the Rules of Intestacy.

We can discuss these options with you and help you decide on the best choice for your situation.

Due diligence when buying into a property

If you will be putting money into a property, you need to be sure that it has a sound title and that other issues are satisfactory. We can carry out the due diligence work necessary to investigate, including carrying out searches and obtaining answers to standard property enquiries.

Protecting your interest in a jointly owned property

If you and your partner will both have money in a property, but you are putting in a larger share, we can ensure that your interests are protected so that, should you decide to separate, your investment will be safeguarded.

Transfer of equity and mortgage or remortgage

If the property that is being transferred is subject to a mortgage, the lender will need to approve any transfer. They may be prepared to release someone from a mortgage if they believe that the remaining owner has the capacity to meet the mortgage payments on their own.

When property is transferred into joint names, it is usual to obtain a new mortgage offer. We are approved by all major high street lenders, and can deal with both the transfer and remortgage on your behalf and on behalf of the lender.

Release from a mortgage if you are giving up your share in a property

If you are transferring property out of your name, you need to ensure that you are released from the mortgage. We can represent you in the transaction, ensuring that the mortgage is redeemed and that your name is removed from the title deeds.

Making a valid Will

When you own property, you are strongly advised to have a valid Will in place. If you own property jointly as tenants in common, this is particularly important. Without a Will, any interest in property held as tenants in common would pass in accordance with the Rules of Intestacy. This means that a cohabiting partner would not inherit and they might have to leave the property if the beneficiary or beneficiaries decided to sell.

How long does a solicitor take to do a transfer of equity

Drafting a transfer of equity is a relatively quick process, however if you are tying in a mortgage, you will be bound by the length of time your lender is taking to process applications. We are usually able to carry out most of the legal work while the mortgage application is being dealt with, meaning that in a straightforward case where both parties are in a position to proceed, we can complete promptly.

Lenders generally aim to provide a response within two to six weeks, although this could be longer in busy periods or when they need to request further information from you.

Contact our East Yorkshire transfer of equity solicitors

If you want to transfer a property and you would like advice and representation, 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.