transfer of equity information

Transfer of Equity

What is the transfer of equity?

The transfer of equity refers to when you transfer a part or all your shares in a property to someone else. This is commonly seen when someone transfers the shares to either their spouse or their child.

What are the steps involved when carrying out a property transfer?

Firstly, your conveyancer will ask you to complete a form TR1. This is the transfer document which states how much the property is being transferred for (if any), who the property is being transferred to and how the property will be held if there is more than one transferee. This form will then be submitted to the Land Registry when the application for registration is made.

If you are transferring the property to someone, then the transferee will be asked to carry out an ID1 form and to obtain legal advice, so they are fully aware of the transaction they are entering. If the shares are being split rather than fully transferred to another person, then your solicitor will ask you to advise whether you want to hold the property as joint tenants or tenants in common.

Put simply, joint tenants means that all the transferees will have an undivided share in the property, so you will both own the whole, rather than an identifiable share of the property. Tenants in common means that your shares will be divided and treated as separate from the outset. This means each of you will be able to deal with your share of the property in your will subject to normal inheritance tax rules.

Restrictions on the title

In many cases of leasehold properties, there will often be a management company involved who will have their own restrictions stated on the title. Therefore, your conveyancer would contact the management company to see if they have any requirements that must be met before the property can be transferred. Often, they will require a deed of covenant and notice of transfer. Alternatively, it may be that there is an outstanding service charge on the property which needs to be paid off. Once this has been satisfied, then you will be able to continue with the transfer.

Land Registry

The final stage of the transfer is to submit the application for registration at the Land Registry. Other documents may need to be uploaded at the same time. This might include grants of probates, death certificates or similar. The cost of the application will depend on the value of the property.

For further information on transferring your property please email or phone us on 0116 2858080.

Contact usBond Adams Solicitors

Bond Adams Solicitors
Richmond House
94 London Road
0116 285 8080

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