Transfers of Equity and Remortgages
What is a transfer of equity?
The net value of the property (after taking off any money owed such as a mortgage) is called the equity.
A transfer of equity is the process whereby the current property owner gives up either a part or their whole stake in a property and transfers ownership to someone else.
It could be that a person is either added on to the property or removed from the property. 
Transfers of equity take place for a number of reasons. Some common examples are listed below:
Tax planning
In some circumstances it can be beneficial for tax planning purposes to transfer ownership of a property, or part of a property, into someone else’s name, for example the owners children.
Marriage or living together
The new partner or spouse may take part ownership of a property that was previous owned in the other person’s sole name.
Divorce or separation
When a couple divorce or separate, the partner leaving the property often wishes to have their 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.
Remortgages
This is the process of paying off an existing mortgage on the property with funds borrowed from a new mortgage company in order to pay a lower rate of interest on the mortgage or to release equity.
Here at Veritas Law we can advise you on all aspects of Transfers of equity and remortages. We have carried out a large number of these types of transactions and we will guide you through the process with clarity.
Please contact us for a no obligation consultation.
