What a transfer of equity actually involves — adding or removing someone from the title of a property without a full sale.
A transfer of equity changes who owns a property without it being fully sold — most commonly adding a partner to the title after marriage or a house move-in, removing an ex-partner after a separation or divorce, or transferring a share of a property as part of estate or family planning.
Even though the property isn't changing hands to a new, unconnected buyer, the legal ownership at HM Land Registry has to be formally updated, and if there's a mortgage on the property, the lender has to consent to the change and often needs the remaining party (or parties) to be assessed as able to afford the mortgage alone.
If money or a share of a mortgage changes hands as part of the transfer — for example, one partner effectively taking on the other's share of an existing mortgage — SDLT or LTT can apply to that value, even though no money is being paid to an outside seller. Your conveyancer works out whether it applies to your specific situation.
The existing title and any mortgage or charges registered against it, lender consent where a mortgage is involved, and — if the transfer is happening as part of a divorce or separation — that it's consistent with any court order or agreement covering the property.
A transfer of equity is usually simpler than a full purchase (no chain, often no new searches needed), so legal fees tend to be lower — but the amount of work still varies by firm and by situation, particularly where a mortgage lender needs to be involved. Comparing itemised quotes still applies here, the same as any other transaction type.
More: all guides
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