Puneet Varma (Editor)

Transfer of equity

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Transfer of equity is an English legal term for the process where the ownership of a share or interest in a property is transferred from one entity to another, a partial conveyance.

Transfers of equity can take place for multiple reasons. Examples include:

  • Marriage or living together: When people marry they often transfer the property into the names of both parties.
  • Divorce or separation: When a couple divorce or separate, property is typically transferred, sometime with compensation. Restructuring a joint mortgage requires the mortgage company's consent.
  • Tax planning: Property owners may transfer equity to their children or other family members to manage their tax liabilites.

    • Transferring equity can be complex, involving land registry applications and stamp duty land tax forms. In these circumstances, a transfer of equity usually involves a conveyancing practitioner to deal with the formalities.

    Lenders' requirements are generally set out in the CML Lenders' Handbook.

    References

    Transfer of equity Wikipedia
    (Text) CC BY-SA