Transfer of Equity

 

You may decide that you want to add or remove a borrower from your mortgage as a result of a change in your personal circumstances.  This is a process called a transfer of equity.

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A transfer of equity is where the ownership of part of a property is transferred, either as a gift or sold to another person, or because you want to remove someone from the mortgage. 

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Your lender will require that the names on the mortgage are amended to match the ownership of the property.

Some examples might be:

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• If you get married and want to transfer your existing home into joint names

• If you get divorced or separated and want to transfer a jointly owned property into the name of just one of the owners

• As part of tax planning 

 

Your mortgage lender does not have to give consent to a transfer of equity and must be satisfied that anyone who remains on the mortgage after the transfer meets their lending criteria and can afford the repayments.

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Do I need a solicitor?

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Your lender will insist that a solicitor acts in the transfer of equity. They are appointed to ensure that the property is correctly transferred and to protect your interests as well as the lenders.

 

It can be a solicitor of your choice as long as they are on the lenders panel of approved solicitors. You can contact me to check this for you or, I can arrange a solicitor via my Conveyancing Service. 

 

What if I need to borrow more money?

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You might be able to apply to borrow more money as part of your Transfer of Equity transaction. 

 

What if my application doesn't meet my lender’s lending criteria?

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If you don't meet lending criteria your lender won't agree to the Transfer of Equity.