Transfer of equity refers to the legal process of adding or removing someone from the title deeds to a property. This could be because of a separation or divorce or because you are moving in with someone.

It is important to understand the different ways in which a property can be jointly owned and to ensure that the legal transfer is executed correctly and registered at the Land Registry. If you are tying in a remortgage, you will also need a solicitor to deal with this aspect of the transaction on your behalf.

At Lockings Solicitors, we offer a remortgage and transfer of equity service for clients in East Yorkshire and beyond. We will explain the implications of transferring property to you and ensure that you have the advice you need to make the right decisions.

Our expert conveyancing solicitors have many years of expertise in dealing with property transactions, including dealing with complex cases and meeting urgent deadlines. If you need advice or representation, 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 remortgaging and 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.

When is a transfer of equity needed?

A transfer of equity changes the ownership of property. It may be needed if you want to put your home into joint names with someone else or if it is being transferred into your sole name or your name is being removed from the title deeds.

It is common to transfer property when there is a change in a relationship, such as a divorce, and we regularly deal with transfers following the making of a financial order or following a separation.

A transfer of equity is often combined in with a remortgage. For example, if you are buying out a co-owner, you may be remortgaging in order to pay them for their interest.

If you are taking over a jointly owned property yourself, you will need your lender’s permission, and they may require you to make a formal application so that they can assess your ability to make repayments. You may want to remortgage instead, which will give you the opportunity to change your mortgage terms, for example, take out a larger loan or alter the length of the mortgage.

What are the different types of joint property ownership?

If a property is being transferred into joint names with someone else, you need to decide what sort of joint ownership is right for your circumstances. The two options are:

• Joint tenants
• Tenants in common

Joint tenants

Owning a property as joint tenants means that you both hold the whole property together, with neither of you owning a defined share. Should one of you die, the other owner automatically owns the whole property. This means that you cannot leave your interest to anyone in your Will.

Tenants in common

If you hold a property as tenants in common, you each own a specified share of the property. For example, 50% each or 75% and 25%. Should one of you die, then that person’s share passes to the beneficiaries named in their Will. If they do not have a Will, then their share will go to the person or persons entitled to inherit under the Rules of Intestacy.

This means that it is crucial to have a valid Will in place if you have a property that is owned with someone else as tenants in common.

Without a Will, difficulties could arise. For example, if you cohabit with your partner but are not married, neither of you would inherit from the other unless you make a Will. This is because cohabiting partners are not entitled to anything under the Rules of Intestacy.

When someone else inherits a share of the property, they might want to sell, which could mean you or your partner would have to leave your home, unless you could afford to buy the other share.

How do I tie in a remortgage and transfer of equity?

It is straightforward for us to tie in a remortgage and transfer of equity. We will generally be ready to complete fairly soon after your mortgage offer is received, provided there are no issues that will be of concern to the new lender.

Do I need a solicitor for a remortgage and transfer of equity?

You will need a solicitor to act for you in respect of both a remortgage and a transfer of equity.

If you ask us to represent you, when dealing with the remortgage we will obtain the title deeds and other relevant property information. Your new lender will need searches to be carried out or search indemnity insurance put in place.

We will report to them on the legal title and confirm that the property complies with their lending criteria.

We will also discuss the legal implications of the transfer of equity with you, whether you are having your name put onto title deeds, removed from the title or transferring your property into joint ownership with someone else.

Once you are happy to proceed, we will draft a transfer document for you to sign.

We will request a redemption statement from your existing mortgage lender and provide you with a financial statement showing the amount that will be payable to you on completion or the amount that you will need to provide in cleared funds prior to completion.

The next step is for us to agree on a completion date with you and order the new mortgage advance. On the day of completion, the transfer will be dated and your previous mortgage redeemed.

Following completion, we will arrange for the transfer and remortgage to be registered at the Land Registry.

How long does a remortgage and transfer of equity take?

The time taken to complete a remortgage and transfer of equity usually depends on the new mortgage lender and how quickly they can process your mortgage application. If they are offering a particularly attractive product and have a large number of applicants, it could take them several weeks to issue your mortgage offer.

We always work to complete promptly. While awaiting the mortgage offer, we can deal with the other elements of the transaction, including checking the legal title, arranging search indemnity insurance and drafting the transfer document.

Contact our East Yorkshire remortgage and transfer of equity solicitors

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.