Transfer of equity Solicitors

Your Trusted Transfer of Equity Experts

Guiding you through the legal process and stamp duty with expertise.

Whether you wish to add, or remove, someone from the deeds of a property, a transfer of equity is the process in which you can do so. Merriman’s dedicated team of expert solicitors is here to guide you through the process, ensuring it is as smooth and stress-free as possible.

What is a transfer of equity?

A transfer of equity is the legal process of adding or removing someone from the title deeds of a property. For the transfer to take effect , at least one of the original owners of the property must remain the same, and the property itself must not be not be sold. Reasons that someone may wish to transfer equity include:

Relationship breakdown – as part of the process of dividing the assets.
A new relationship – adding your new partner to the deeds as a joint owner.
Buying someone out – if you’ve bought a property with friends or family, you may wish to buy them out and become the sole owner.
Tax – transferring equity to children or other family members can be more tax efficient, however it’s important to seek legal guidance before going ahead.

What is the stamp duty on a transfer of equity?

Just as when you purchase a property, a percentage stamp duty cost may be applicable. For transfers of equity worth up to £250,000, there is no stamp duty; between 250,001 and £925,000 is five per cent, £925,001 – £1.5m is 10 per cent and transfers worth more than £1.5m include a 12 per cent stamp duty charge. This is worked out based on the amount of equity in the property, the percentage of what equity you are taking and what, if any, amount is left on the mortgage.

What is the process of a transfer of equity?

We recommend instructing a qualified solicitor to guide you through the transfer process, as there are many moving parts that need to be addressed in order to ensure it’s legally binding. Generally, you can expect the process to follow something similar to the below:

Obtain an official copy of the property deeds and check if there are any outstanding mortgages on the property.
Prepare the transfer deed documents.
Once your transfer deed is ready, you’ll meet with the parties and sign the documents with witnesses present.
If there are any mortgage lenders or banks and building societies to notify, this must be done, and they must provide their written consent to continue with the transfer of equity.
Your solicitor will then register the deed transfer at the Land Registry, and a fee will need to be paid. This will cost somewhere between £20 and £305 depending on the value of your property. Your solicitor will add this fee to your overall legal costs.

How long does a transfer of equity take?

If your transfer is straightforward and there are no third party lenders that need to supply written consent, a transfer of equity can take as little as four to six weeks. This time frame also depends on the agreement of the parties involved; if any complications arise, it will likely take longer.

Will I need to pay Capital Gains Tax (CGT)?

CGT may be payable upon transferring equity to another person or persons. There is an allowance of £3,000 (2024/25 tax year), but any additional value that you have gained since you acquired the property, or your share of it, will be subject to tax. However, CGT is not always applicable. If, for example, you have used the property as your main residence for the entire time that you owned it, you may qualify for relief. A solicitor can help you understand how CGT affects your personal circumstances.

Why choose Merriman Solicitors?

At Merriman Solicitors, we are highly experienced in helping our clients complete a transfer of equity in a timely manner, with no unexpected surprises along the way. Our expert team will ensure you are informed at every stage of the process, and will provide legal advice and guidance throughout. If you’d like to know more about completing a transfer of equity, please get in contact to discuss your requirements.

Alternatively, browse our complete range of residential services here.

Why choose Merriman Solicitors (Incorporating AB Family Law)?

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Frequently Asked Questions about Transfers of Equity

Do I need a solicitor for transfer of equity?

Whilst it is possible to complete an equity transfer without instructing a solicitor, it is not recommended. This is because there are multiple forms and notifications to issue, and many of the documents require signatures to be witnessed by a legal professional. It is always advisable to seek legal guidance to ensure the transfer is done correctly and is legally binding.

What happens if the property has an existing mortgage?

If you wish to transfer some of the equity of a property where there is an existing mortgage, the only amendment to the process is that the mortgage lender needs to be notified of the request, and they will need to provide written consent.

How do you avoid Stamp Duty on transfer of equity?

The only circumstance in which stamp duty is avoidable is if the share transfer is less than the current SDLT threshold for the property type. For example, if the total amount of equity being transferred (including any mortgages on the property), is worth less than £250,000, then no stamp duty is payable.

Do both parties need a solicitor for a transfer of equity?

Ideally, yes, both parties would benefit from the expertise of a qualified solicitor. It means that everyone involved in the transfer is fully aware of the process, plus any legal or tax issues that may arise.