Lawyers for Transferring to Family Members
Legal Expertise for Transferring Equity to Family Members
Transferring equity is the legal process where an existing property owner adds or removes someone to the title deeds of the property, such as a property transfer between family members.
There’s no sale of the property and at least one of the original owners of the property will stay the same.
The assistance of a trusted conveyancing solicitor can be extremely valuable, particularly when it comes to the wording of any transfer agreement and drawing up transfer deed documents and other legal documents throughout the transfer process.
What Is the Process of Transferring Equity to a Family Member?
- Execute a Deed of Gift, also known as a Transfer of Gift.
- Completion of a “TR1”. This is a “transfer of whole ownership” form. If you’re only transferring part of a property, you’ll need to fill out a “TP1” instead.
- Fill in an “AP1” form, which serves to change your property’s details in the Land Registry.
- If you’re not using a conveyancer, you should also complete an “ID1” form, which enables you to confirm your identity.
- The above forms, along with the required fee for the process should then be sent to the Land Registry.
Transferring Property to Your Spouse or Civil Partner
If you are newly married or have entered into a civil partnership and want to put your spouse on the title deeds of a property you are the original legal owner of, you may want to transfer ownership of a property.
For this, you’ll need to instruct a conveyancing solicitor to complete the legal requirements and advise you on the best options for you during your transfer.
You might also need to consult with your mortgage lender if you have a mortgage on your property to check if the mortgage will still be paid with an extra person coming onto the title deeds.
If you are the party taking on the equity (and possibly part of a mortgage), you may have to pay stamp duty in order to become a joint owner of the property.
You will pay Stamp Duty Land Tax if the chargeable consideration given in exchange for the share transfer is more than the current Stamp Duty Land Tax threshold for the property type. Check this with your conveyancing solicitor.
Transferring Property to Your Children
You might want to transfer a share of your property to your child to, for example, give them a leg up on the property ladder and give them legal property ownership without the need for a large deposit and mortgage application of their own.
You might also want to transfer joint ownership of the property to your children for inheritance tax purposes to help them avoid this tax when they inherit the property but want to remain living in the property.
A transfer of equity might be the right option for you if this is the case.
The transfer of equity process is the same as with a spouse or civil partner and your children will similarly have to pay stamp duty on the share they receive if the equity/mortgage is over the current Stamp Duty Land Tax threshold for the property.
Get in Touch with Our Expert Lawyers
We’re a full-service conveyancing practice with teams covering every conceivable aspect of property law.
So, if you need support with remortgaging, transferring equity, or any other conveyancing issue, our conveyancing team can provide expert advice and peace of mind.
To speak to one of our expert property lawyers about the legal process of property transfers, you can call us at 0333 433 0275, email us at hello@homepropertylaw.co.uk, or fill in our contact form.
