How Long Do Transfers Of Equity Take?

How Long Do Transfers Of Equity Take?

The process of transferring equity involves updating the title deed at the Land Registry – but just how long does this take?

As a guide, a transfer of equity in England and Wales takes:

• 3-4 weeks, if no mortgage
• 4-6 weeks, if straightforward with a mortgage
• 6-8 weeks or more, if more complicated

After completion of a transfer of equity, it often takes a few weeks for the Land Registry to update official records.

Transfer Of Equity – What Is It?

A transfer of equity is the legal process of changing ownership of a property by adding or removing someone or more people from the title deed. To comply with the legal aspects of transfers of equity, at least one of the original owners of the property must remain.

The reasons for making the change vary and range from adding a new partner after getting married or removing a partner after separating, through to tax efficiency purposes.

Transfer Of Equity – What Is The Process?

The transfer of equity process usually includes the following steps:

Title Review

Your conveyancing solicitor obtains a copy of the title deed from the Land Registry to verify current ownership and to check the details such as property restrictions and if there’s a mortgage in place or not.

Mortgage Check

If there is a mortgage on the property, the lender must provide consent for the transfer to go ahead. Before the lender does this, they will carry out checks, including affordability checks and who the responsible party for mortgage payments is and whether a new mortgage is needed.

Transfer Deed

The transfer deed is a legal document, normally a TR1 form, that is readied so that it states the existing and new owners, whether money is involved, and what the division of equity is.

Signing

The documents must be signed and witnessed to make the transfer deed legally valid.

Completion

Once the transfer deed has been signed, any money that is owed is transferred, any Stamp Duty Land Tax (SDLT) is sorted, and the new deed is registered with the Land Registry.

Is SDLT Payable On Equity Transfers?

Whether SDLT is owed on a transfer of equity depends on certain factors, including whether money changed hands as part of the process or an existing mortgage was taken on by a new party.

What Causes Delays With A Transfer Of Equity?

As a guide, common delays to completion of a transfer of equity, include:

• Mortgage lender consent needed
• Additional checks by mortgage lender required
• Remortgage needed
• Missing or incomplete documents
• Disagreements between parties
• Property valuation or extra legal checks needed if one party buying another out

How Can You Avoid Delays To Your Transfer Of Equity?

The time it takes to complete your transfer of equity does depend on how complicated the transfer is. However, there are certain things you can do to help ensure the process runs as smoothly and efficiently as possible.

Tips to help speed up the completion of a transfer of equity, include:

• Preparing documents in advance
• Understanding mortgage requirements
• Speaking to mortgage lenders early
• Responding promptly
• Seeking early legal advice
• Using the right lawyer

Helping You With Your Transfer Of Equity

Whatever the reason for your transfer of equity, we understand that each transfer is unique and work hard to ensure the process is handled by our most experienced conveyancing solicitors to guarantee everything is completed efficiently and accurately.

While transfers of equity are more straightforward than property sales, as a rule, there are legal and financial implications associated with them, and you can still be at risk of delays and legal misunderstandings. This is why it’s important to use a conveyancing solicitor you can trust.

Our residential property solicitors will advise you at every step of the process, ensure your transfer of equity happens as fast as possible. Furthermore, your solicitor will ensure all documents are prepared accurately and timely, spot and resolve any potential issues, make sure the transfer is fair to you, and that you understand the long-term implications for you for property ownership and responsibilities as well as any tax implications.

To speak to us about your transfer of equity, you can contact us at our Chorlton office on 0161 860 7123 or email chorlton@hlfberry.com or at our Failsworth office on 0161 681 4005 or email failsworth@hlfberry.com and we will be happy to help.