Transfer of Equity: Costs, Process & Benefits

A transfer of equity is the legal process of adding or removing someone from the ownership of a property. Whether due to a relationship change, inheritance, or tax planning, this process requires the expertise of a solicitor to ensure legal compliance. In this guide, we’ll explain the costs, process, and benefits of a transfer of equity.

What Is a Transfer of Equity?

A transfer of equity occurs when an existing property owner adds or removes an individual from the title deeds. Unlike a sale, there is no exchange of money between a buyer and seller, though financial adjustments may be required for mortgages or settlements. Common reasons for a transfer of equity include:

• Marriage or cohabitation – Adding a spouse or partner to the title.
• Divorce or separation – Removing a former partner from ownership.
• Gifting property – Transferring ownership to a family member.
• Inheritance planning – Distributing assets for tax efficiency.
• Mortgage restructuring – Adjusting ownership to reflect financial contributions.

Why Do You Need a Solicitor for a Transfer of Equity?

A transfer of equity solicitor ensures that the legal process is correctly handled, including verifying identities, dealing with mortgage lenders, and updating the Land Registry. If the property has a mortgage, the lender must approve the transfer before proceeding. Without professional legal assistance, errors in the documentation could lead to delays or financial risks.

The Process of a Transfer of Equity

The process for a transfer of equity involves several key steps:

1. Instruct a solicitor – Choose an experienced solicitor.Parachute Law offers expert services for equity transfers.
2. Title review – Your solicitor checks the property title and any existing mortgage.
3. Mortgage lender consent – If applicable, your lender must approve the transfer.
4. Drafting transfer deed – The solicitor prepares the TR1 form, which is signed by all parties.
5. Stamp Duty considerations – If money changes hands, Stamp Duty Land Tax (SDLT) may apply.
6. Land Registry update – The solicitor submits the necessary documents to update the ownership records.

How Much Does a Transfer of Equity Cost?

The cost of a transfer of equity depends on whether the property has a mortgage, Stamp Duty implications, and solicitor fees. Typical costs include:

• Solicitor fees – Ranging from £250 to £750 for straightforward cases.
• Land Registry fees – Vary based on property value.
• Stamp Duty Land Tax (SDLT) – Applies if money is exchanged above the SDLT threshold.

AtParachute Law, we offer transparent pricing with no hidden fees.

Benefits of a Transfer of Equity

• Legal ownership clarity – Ensures property ownership is properly recorded.
• Financial security – Protects interests during relationship or financial changes.
• Tax planning advantages – Helps with inheritance tax and financial structuring.
• Mortgage adjustments – Facilitates necessary changes with lenders.
• Smooth legal process – Prevents delays with professional handling.

Get Expert Transfer of Equity Advice

If you need a transfer of equity solicitor,Parachute Law is here to help. Our experienced team will guide you through the process efficiently and affordably.

Contact us today to start your transfer of equity and ensure a seamless property ownership change