If you are thinking about transferring some or all of the equity in your home to another party and don’t know how to go about it, then you may like to read through our simple beginner’s guide to the process. We have covered most of those frequently asked questions that people often raise to give you some idea of how it works.
What Does Transfer Of Equity Mean?
This is when there is a legal change in the ownership of a property between parties. It could be that you are marrying and wish to share the property with your spouse, or you are separating and one party wishes to leave the property and the other is offering to buy them out. In some instances, an older family member is transferring part ownership of the property to a family member or even helping a younger family member get their foot on the property ladder.
It is a good idea to get an independent valuation of your property to find out if there is an equity balance. This will give you a better idea of the amount of transfer that will be required if you are buying out another party in the property or allowing someone else to become a joint owner, for example. It is always best to run these things past a legal representative before you commit to anything.
Are you wondering what does transfer of equity mean? One of the first things to do is to consult a solicitor or a conveyancing firm, who understand all the processes that are involved. Because there are many legal steps to consider before the transfer is finalised, so it is important to get the right advice. Your legal representative will want to check the property deeds and all the identity documents of the people concerned and prepare the new documents for the Land Registry too.
If you have an existing mortgage on the property, you will need to consult and ask permission of the mortgage provider before you undertake any type of transfer, as it may have implications for your mortgage. If you are adding another person to the deeds of the property, then your mortgage provider will have to be in agreement and will make their own investigations before they give their approval.
When undertaking such a transfer it is always advisable to seek independent advice so that you make sure you are making the right decision, especially when it comes to a major investment such as ownership of a property.