Transfer of Equity & Remortgages
A transfer of equity is when you transfer all or part of your interest in a property to another person (or company).
You might transfer equity if you:
- Sell your share in a property;
- Buy out an ex-partner after a separation;
- Buy out a joint owner;
- Wish to make a new spouse, civil partner or unmarried partner a joint owner of your home.
If the property is leasehold you will need to get the landlord’s permission. If there is a mortgage you will need to get the lender’s permission. The lender might require you to discharge the existing mortgage and get a new one.
It is important to fully understand the effect of the transfer and the steps which are needed to give effect to it. Where the transfer is for money, arrangements must also be made for funds to be paid from one party to another.
In some cases, there may also be an obligation to pay Stamp Duty Land Tax even where no money changes hands.
We will advise you throughout the process and make sure that your transaction is properly completed and registered at HM Land Registry.
A remortgage is when you redeem your old mortgage and take out a new one either with your existing lender or with a different lender but stay in your current home. Mortgages are registered at H.M. Land Registry and are referred to as “registered charges.” If you obtain a new mortgage from your existing lender, they may be satisfied with their existing charge over the property, in which case, you may not necessarily need help from a conveyancing lawyer.” However, if you take a loan from a new lender you will need help and advice and your lawyer must attend to the redemption of the existing charge and the registration formalities of the new loan at the Land Registry.
If you get a better deal with a new lender, the money that they lend to you must be used to pay off the old loan so that the existing lender’s registered charge can be removed at H.M. Land Registry. The new lender will want to make sure that the loan is properly secured against your property and so they will require a lawyer to provide them with a report about the property called a certificate of title.
They will also require that the new charge is registered against the property at H.M. Land Registry.
We can deal with all of this for you.
Your property transaction is safe in our hands.