When a property is transferred into joint names or from joint names into a sole name, it is often necessary to obtain a new mortgage. Find out about transfer of equity mortgages, how long the process takes and what you need to know about joint property ownership.

At Lockings Solicitors, our experienced property lawyers have been representing clients in East Yorkshire and beyond for many years. We have a reputation for dealing efficiently with matters, including when handling complex transactions, and we always aim to meet deadlines.

We are known for the excellent level of service we provide and if you ask us to represent you, we will ensure that you have the advice and guidance you need.

We offer a FREE initial chat so that you can ask us any questions you may have about transfer of equity mortgages. 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 allows you to change property ownership and the names on a property’s title deeds. This could be because you are separating and your shared home is being transferred into your sole name or because you are moving in with someone and would like a property put into your joint names.

How does a transfer of equity mortgage work?

If a property is subject to a mortgage, it is always necessary to obtain the lender’s consent to the transfer. This is not always straightforward. If a property is being put into your sole name, they will want to ensure that you are able to make the monthly repayments on your own. This will involve checking your financial position, and you will need to provide them with a range of information relating to your income.

They might not be prepared to allow you to continue with the mortgage on your own. In that case, you may still be able to find a mortgage that allows you to keep the property. For example, you could take out a loan over a longer period of time so that the monthly payments are lower or, if you have investments maturing in the future, have an interest-only loan.

If you are putting a property into joint names, you will need to take out a new mortgage with the other party.

We routinely deal with combined transfers of equity and new mortgages and can handle both aspects of the transaction simultaneously.

The equity transfer and mortgage process

We will start by obtaining the title deeds and requesting any property information we need from you.

You will need to either apply to your chosen lender for a mortgage or ask them to approve the transfer if it will be subject to their mortgage.

If necessary, we can apply for searches. Alternatively, your lender may be prepared to accept search indemnity insurance, which is a faster option.

We will go through the legal title and draft the transfer document ready for signature.

Once the mortgage offer is received, we will check this and draw your attention to the terms and conditions.

You will then be able to sign both the mortgage deed and the transfer document in preparation for completion.

We will obtain a mortgage redemption statement for any existing mortgage, which will show the amount the lender will need to pay off their loan. We can then provide you with a completion statement showing the amount you will need to let us have in cleared funds for completion or, alternatively, the amount that will be payable to you.

We will also discuss the legal implications of the transfer with you and ensure the transaction is in your best interests. If you are putting your property into joint names, we will go through your options and check that you select the right type of joint ownership for your situation.

On the day of completion, we will redeem your existing mortgage, if you are taking out a new loan, and date the transfer. We will then arrange for the change in ownership and the new mortgage to be registered at the Land Registry.

What types of joint ownership are available for a transfer of equity?

When you own property jointly, you can choose between:

• Ownership as joint tenants; and
• Ownership as tenants in common

Owning as joint tenants means that you both hold the whole property together. Neither of you is entitled to a specified share. Should one of you die, the other will automatically own the entire property.

Owning as tenants in common means that each of you will own a particular share of the property. This could be half each, or if one of you has put more equity into the property, shares could be unequal, for example, 75% and 25%. Should one of you die, their share will pass in accordance with the terms of their Will or the Rules of Intestacy. It is therefore essential to have a Will in place if you own a property as tenants in common.

How long does a transfer of equity and mortgage take?

The length of time a transfer of equity and mortgage takes will usually depend on the lender. They will either need to make checks and carry out work prior to approving the removal of someone from a mortgage or go through a new mortgage application. At busy times, this can take six weeks or more.

We can carry out the work that we need to do while the lender is approving your application. This means that once we have the mortgage offer or their consent to the transfer, we will usually be ready to arrange completion.

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

You will always need a solicitor to represent you in a transfer of equity and mortgage. As well as providing you with advice on the transaction, your solicitor will need to represent your mortgage lender, ensuring they have the information they need and that the necessary due diligence work is carried out.

At Lockings Solicitors, we are approved to represent all major high street lenders. This means that we can act for both them and you in the transaction. We always work proactively to provide the lender with the certificate of title that they need promptly and to reach readiness for completion without avoidable delays.

Our experience means that we can deal with any complications efficiently and work to complete in line with your preferred timescale.

Contact our East Yorkshire transfer of equity solicitors

If you would like to speak to us about transferring property subject to a mortgage, we will be happy to hear from you.

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.