Six transfer of equity FAQs

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Transferring equity is a term that some people will not be familiar with, so it often leads to questions about the process. To help you understand more about it, let’s take a look at the six most frequently asked questions.

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What is a transfer of equity (ToE)?

ToE is a legal process that adds or removes a person from the title deeds of a property. It is not the same as the sale of a property, as one or more of the original owners will remain the same but at least one person will be added or removed. This can happen for a number of reasons, such as if a couple marries or separates, if ownership or part-ownership is gifted to a family member, or if a person requests to remove their name from a mortgage agreement.

Is a solicitor required for this process?

It is recommended that you seek legal advice when considering a ToE to ensure both parties understand the legality of the transfer and are adequately compensated. If one party wishes to be removed from the deeds in the event of a separation, for example, they need to be sure they are receiving the right amount for their share of the property.

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Can both parties use the same solicitor?

In some cases, you can use the same solicitor; however, it is generally recommended that each party has their own solicitor to avoid a conflict of interests, especially when one party is relinquishing their joint ownership of a property or money is involved.

How much will it cost?

ToE is a relatively inexpensive process. The bill can be shared between the parties or paid by one of the parties. There will be the usual solicitor fees; in addition, there will be fees for processes such as identity checks, transfer fees, and HM Land Registry fees.

How can you find a solicitor who specialises in this process?

It is a good idea to ask for recommendations; alternatively, you can ask a local firm of solicitors whether they handle ToE or search online. Reputable companies such as https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-process-3894 can handle the process for you via their panel of solicitors.

How long will the process take?

A transfer can often be finalised in as little as a few weeks, particularly if there is no money changing hands or there is no existing mortgage agreement.

As this is not such a familiar term, it sometimes raises questions. This is why it is always a good idea to ask the right questions and ensure you understand the process before you engage someone to complete the process for you.

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