If a home owner or owners wishes to sell or give all or part of their interest to another owner or owners – an action which may arise for a number of reasons – the services of a residential property conveyancing solicitor will be needed to liaise with the mortgage lender and ensure that the ownership is legally transferred.

Equity is the technical name for the balance of money between any outstanding mortgage and the value of the property.

Usually an equity transfer will arise when one borrower is released from or added to a home's mortgage. For example, when marriages or partnerships break down and, conversely, when two people live together in the existing home of one of them.

An equity transfer may also occur if a sole owner is having financial difficulties and wishes to add another owner with a better credit history than their own to the mortgage deed. An agreement of this sort may mean the original owner can then remain living in the home but as a joint mortgagee rather than singly.

Financial advisers occasionally suggest that to minimise tax payments a property could be wholly or partly given to another family member and this type of equity transfer should be undertaken only following specialist legal advice.

If an existing mortgage is to continue with the addition, or subtraction, of one or more owners, the mortgage lender has a right to refuse an equity transfer request. The lender will judge the ability of the new borrower to meet the financial commitment and may insist on certain conditions.

Often when transfers of equity are being made it is also a good time to remortgage; either moving to a more financially-advantageous payment scheme and/or moving to a different borrower. Any new mortgage deed will need to be completed at the same time as the transfer.

Transfers of equity and Healys solicitors of London and Brighton

As with other property buying and selling transactions, owners and potential home owners need to take advice from an experienced conveyancing solicitor to handle the administration of transfers of equity.

Whatever the reason for requiring an equity transfer, having a specialist residential conveyancing solicitor who is used to the formalities of all types of home buying and selling will help to ease the transaction. Communication is important to the team at Healys and everything about the transfer will be explained to clients in plain English.

Stamp duty will be payable on some transfers of equity and, although there will be legal fees to pay, no ‘hidden extras' are charged. You can apply for an online quote or contact us in London or Brighton by email or telephone before you make a commitment.

If you want to regularise or change your property ownership and make a transfer of equity, by consulting Healys' residential conveyancing solicitors, you can be sure of receiving the services of helpful, experienced professionals.

For more information, you can request a call-back via the website, email partner Kiri Kkoshi, telephone 020 7822 4148 or associate solicitor Darina Gowen telephone 01273 669 115