What is equity?
Equity is simply a legal term for how much of your property you own (as opposed to the bank).
For example, let’s say your house is worth £200,000 and you have an outstanding mortgage of £150,000. In this case, you would have £50,000 of equity.
Why might a transfer of equity be necessary?
The most common reason for a transfer of equity is when a marriage or partnership breaks down. Rather than sell a jointly owned property, one partner may decide to stay there and buy out the other.
The outgoing partner’s share of the equity is released so that they can be bought out.
They are then removed from the title deeds and released from the mortgage obligations, which are taken on by the partner who stays.
What do I need to do?
You will need to instruct a conveyancing solicitor to carry out the legal work on your behalf. Fortunately, the work is relatively straightforward (for legal work!) and therefore not nearly as expensive as you might expect.
Typically, it can be done for £350 or less – including expenses and VAT. And that’s a very important point: There are a lot of cheap online quotes that don’t include expenses or VAT and end up being double or even triple the headline price.
Make sure that any quote you get includes both expenses and VAT before going ahead and instructing your solicitor.