A Transfer of Equity is the legal process of adding or removing someone from the ownership (title deeds) of a property. Unlike a property sale, at least one of the original owners will remain on the title.

It is a common procedure for homeowners at different stages of life—whether through relationship changes, family planning, or financial restructuring.

Equity is simply the portion of your home that you own outright, after deducting any mortgage balance.

For example:

• Property value: £300,000

• Outstanding mortgage: £120,000

• Equity: £180,000

If one person leaves the ownership, they may receive their agreed share of this equity. If there is a mortgage, the lender’s consent will usually be required before the transfer can take place.

A transfer of equity may be required in a variety of circumstances:

• Relationship breakdown – One partner may be removed from the deeds as part of a separation or divorce settlement.

• New relationship – A sole owner may wish to add their partner to the property.

• Buying out a co-owner – Friends, siblings, or investors who purchased together may eventually want to buy out another’s share.

• Tax and estate planning – Parents may transfer property to children, or homeowners may restructure ownership for inheritance tax (IHT) or capital gains tax (CGT) purposes.

• Family restructuring – Property may be transferred into joint names or between family members to reflect new arrangements.

Each transfer is unique, which is why it’s essential to seek legal advice tailored to your situation.

Some common scenarios include:

• Two to one – A separating couple transfers ownership from joint names to a single owner.

• One to two – A sole owner adds their new partner to the title deeds.

• Two to two – An ex-partner is removed and replaced with another person (such as a new spouse).

• Parent to children – A homeowner transfers part of their property interest to children for estate planning.

Important restrictions:

• There must always be at least one legal owner.

• A property cannot have more than four legal owners at one time.

A solicitor will guide you through the process, which typically involves:

1. Reviewing title deeds – Checking ownership and any restrictions with the Land Registry.

2. Drafting the transfer deed – Preparing the legal documentation for signing.

3. Signing in front of witnesses – Ensuring the deed is executed properly.

4. Notifying lenders – Obtaining consent from your mortgage provider or other secured lenders.

5. Registering the change – Submitting the deed to the Land Registry and paying the registration fee (currently £50–£920, depending on property value).

Most transfers involve a mortgage, which can complicate the process. Options include:

• Paying off the mortgage – Using personal funds to discharge the debt before transfer.

• Obtaining lender consent – If one party is leaving, the lender must agree that the remaining or incoming party can afford repayments.

• Remortgaging – Refinancing to raise funds for a buyout or restructure ownership.

Remember: a mortgage is a binding credit agreement. You cannot change ownership without addressing your lender’s requirements.

Even when no money changes hands, Stamp Duty Land Tax (SDLT) may apply if the transfer involves a mortgage. This is because the incoming owner is effectively taking on debt—known as chargeable consideration.

Example (from Gov.uk):

• Property value: £500,000

• Mortgage: £400,000

• Half transferred to new spouse → £200,000 mortgage responsibility taken on

• SDLT payable on £200,000 (calculated at £1,500 in this scenario)

If there is no mortgage, no SDLT is usually payable. Certain exemptions apply (e.g. transfers under a court order during divorce or separation).

The tax treatment depends on the parties involved and the purpose of the transfer:

• Capital Gains Tax (CGT) – No CGT is charged on transfers between spouses, civil partners, or charities. Transfers to others (e.g. children) may trigger CGT, though allowances and reliefs can reduce the bill.

• Inheritance Tax (IHT) – A transfer may be treated as a potentially exempt transfer (PET). If the donor lives for 7 years after the transfer, it falls outside their estate for IHT purposes.

• Stamp Duty Land Tax (SDLT) – As explained above, SDLT may apply where a mortgage is involved.

Tax planning should always be carried out with professional advice.

• Under-18s – Minors cannot legally hold property. Instead, a trust arrangement can be used, with a trustee managing the property until the child turns 18.

• Unequal shares – Where owners contribute unequally, a Declaration of Trust can be drafted alongside the transfer to formally record ownership proportions.

• Leasehold properties – Some lease terms require landlord or freeholder consent before transferring equity.

Do I always need a solicitor?

Yes. Transfers of equity involve legally binding documents and potential tax implications. Each party should usually have their own solicitor to ensure independent advice.

How long does it take?

Straightforward transfers can complete in 3–6 weeks, but timescales vary depending on lender consent and complexity.

Can equity be gifted?

Yes. Transfers can be made without money changing hands, often from parents to children. However, tax and SDLT rules still apply in some cases.

Can equity be transferred during separation?

Yes, but where divorce or dissolution proceedings are ongoing, transfers are usually made under a court order, which can exempt SDLT.

Should I seek tax advice?

Yes. Tax advice is strongly recommended to ensure you are aware of the full financial implications as a result of the Transfer. We are unable to provide specific Tax Advice and you are urged to seek advice from a Professional Regulated Individual.

At Manak Solicitors, our expert conveyancing team handles all aspects of transfer of equity, including:

• Transfers with or without a mortgage.

• Transactions involving gifts or buyouts.

• Leasehold and freehold properties.

• Drafting Declarations of Trust where shares are unequal.

• Coordinating with lenders and tax advisors where needed.

We provide clear, efficient, and supportive guidance throughout the process—ensuring your transaction runs smoothly and your interests are fully protected.

Contact us today to discuss your circumstances and get a tailored quote for your Transfer of Equity.