Conveyancing

Transfer of Equity

If you currently have a mortgage on your property, you will need to obtain consent from your mortgage lender for any proposed equity transfer, before work can begin on the transfer itself. You will also need permission from anyone else who holds equity in the property.

Once you have consent to do the transfer of equity, you can instruct a solicitor to start the process going. Once you have a solicitor in place, you need to sign and return their client care letter, and provide them with as much information as you can in relation to the equity transfer.

Your solicitor will contact the Land Registry to obtain up to date information on who holds the equity in the property currently, and in what share. If there is a mortgage on the property, the solicitor will also ask the mortgage lender for a redemption figure on the current mortgage.

If you are keeping your existing mortgage, you will need a letter of consent from your lender for the equity transfer. If you are taking out a new mortgage, you will need a new mortgage offer from that lender.

Your solicitor will ask you to complete and return a property information form, and depending on whether you are having a mortgage, your solicitor may also undertake legal property searches.

If you are taking out a new mortgage the solicitor will draw down the funds for the new mortgage, and if there is an old mortgage in place redeem that as well. If there are funds to be returned to the client, the solicitor will usually deduct their fees and then return the balance to the client.

The solicitor will complete the process by updating the property records at the Land Registry, with details of the new owners and mortgage lenders (if appropriate).