When the ownership of property is changed between individuals, the equity in the property is transferred. The transfer of land between people must be carried out by way of a transfer deed and the transfer must be registered at Land Registry. If the land is not registered, then the transfer gives rise to a compulsory registration of the land.
Even if the transfer is made for no financial value, the value of the property must be declared in any case. If any money is paid for the transfer or a debt assumed (e.g. by becoming party to a mortgage affecting the property) then the value must be noted and there may be a liability to pay Stamp Duty Land Tax, depending on the circumstances.
Any mortgage lender will need to grant its consent to the transfer and ensure the lender’s interests are protected.
We can act and advise on all aspects of transfers of equity and remortgages, including acting for the mortgage lender, where appropriate.