There are occasions when it is necessary to change the status of ownership of property. This could be because of a "separating of the ways" between two parties, or the "creation of a new personal partnership".
There are also situations where, for example, parents help their offspring onto the first step of the property ladder by lending them the deposit for their all-important first purchase of a property, and need to ensure that their investment will be returned to them in time, with or without interest!
Some Transfers of Equity involve obtaining the existing lender's consent because the transfer is to be subject to the existing mortgage, or it may be that the existing mortgage be repaid and a new mortgage registered on the property at the same time. It is important to ensure that if one party is to be removed from the ownership of a property, that they are also removed from the mortgage covenants [conditions of the mortgage] in the existing mortgage [subject to the lender's approval of course].
It may be that Stamp Duty is due on a Transfer of the equity of the property. It will depend on the value of the property, the amount of the current mortgage debt and any consideration to be paid.
We can advise you in respect of all these situations and more.
For more information please contact either Bob Carter or Hardeep Dol.
If you would like more information on Equity Transfer please CONTACT US or fill in our Get in touch form.