When it comes to home ownership, there are many legal processes that you need to be aware of. Some of these processes occur during the purchasing and selling of property, however, there are some, such as the transfer of equity, that may arise in a number of other situations.
The transfer of equity process occurs when a property or land owner decides to remove or add one or more additional people to the property’s title. There are a number of different reasons why you might want to explore the transfer of equity process, including when giving property as a gift to your child or when adding the name of your new partner to the deeds of your property.
As with all legal processes, there are fees and costs that you should be aware of in advance to avoid unwelcome surprises along the way. Similarly, it is important to equip yourself with all the information needed to make the most informed decisions.
How much does the transfer of equity process cost?
It is important to work with an experienced transfer of equity solicitor from a reputable firm such as Sam Conveyancing who will efficiently guide you through the process from beginning to end.
Your conveyancing solicitor will be able to provide you with an accurate estimation of the particular costs that will be incurred along the way, including reviewing the title deeds to the property, preparing all required legal documentation, and registering the new owners with the Land Registry.
Solicitor’s fees for this type of work typically range between £250 and £750 plus VAT. In some cases, the person receiving a share in the property will need to engage legal representation from a different solicitor to the transferor, which will result in additional costs.
What do I need to know about Land Registry fees?
Registration with the Land Registry generally costs between £20 and £455, depending on the circumstances and value of the equity transfer.
In some cases, the recipient of the share in the property will be paying for the equity they are receiving. If the value is between £0 and £80,000, a Land Registry fee of £20 will be incurred. Fees increase gradually, with equity transfer values that exceed £1m incurring £500 in Land Registry costs.
If the recipient of the share in the property is not paying for the equity, then different fee scales become applicable. If the equity transfer value is below £100,000, a £20 Land Registry fee will be payable. Again, this increases gradually in line with the increase in equity, with values exceeding £1m incurring Land Registry costs of £140.
Does an existing mortgage affect the transfer of equity?
If the property has an outstanding mortgage, the lender may request the purchase of search indemnity insurance, which means that the lender is insured if conveyancing searches reveal issues that could ultimately impact the overall value of the property. Both the value of the property and the policy provider will influence the cost of the search indemnity insurance policy, however, most policies range somewhere between £50 and £150.
Who should pay the transfer of equity costs?
Every situation is different. In some cases, all parties involved will share the costs, but in other cases one party may pay all of the fees.
