Transfers of Equity
A transfer of equity means the transfer of a persons share in a property. It could be that a person is either added on to the property or removed from the property.
The equity in a property is the net value of their share of the property. This means the value of the property minus any mortgage or loans secured on it. A transfer of equity is the process whereby the current property owner relinquishes either a part or their whole stake in a property and transfers ownership to someone else.
Transfers of equity can take place for a number of reasons. Some of the most common examples are:
Marriage or living together
The new partner or spouse may take part ownership of a property which was previous owned in the other person?s sole name.
Divorce or separation
When a couple divorce or separate, the person leaving the property may wish to have there name, and legal liability for the property, removed. In some circumstances this will involve a cash payment being made, ie the person retaining the property will buy the other persons share out. This financial settlement will usually be worked out as part of a divorce settlement.
When a joint mortgage is in place on the property, the mortgage company?s consent will be required before someone can relinquish their liability to that mortgage and their name can be removed.
Here at Maclaren Warner Solicitors we can advise you on all aspects of Transfers of equity. We have carried out a large number of these types of transactions and we will guide you through the process with clarity.
Whatever your situation, we can also offer advice and representation to you on related matters such as Divorce or Separation or Inheritance Tax Planning.
Please contact us for a no obligation consultation.