Buying or selling a home is a significant life event, and at THB Legal, our dedicated conveyancing solicitors are here to ensure a smooth and stress-free process. Beyond standard property transactions, we offer a comprehensive suite of conveyancing services designed to meet your evolving property needs. Whether you’re a first-time buyer moving up the property ladder or an experienced investor, our expert team provides clear, efficient, and reliable legal guidance every step of the way.
Our expertise extends to various additional conveyancing matters, providing you with seamless legal support for your property endeavours. We regularly assist clients with remortgaging a property, helping you to navigate the complexities of securing a new mortgage deal with ease. Furthermore, our solicitors are highly experienced in facilitating the transfer of equity, ensuring that changes to property ownership are handled precisely, whether due to a gift, divorce, or other personal circumstances.
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Why choose THB Legal?
The conveyancing process can be intimidating if you’re unfamiliar with the legal requirements and regulations applicable to actions like remortgaging a property or the transfer of equity. At THB Legal, our solicitors work alongside you to make the process as streamlined as possible; offering a friendly, local perspective to avoid any uncertainty.
Here’s what sets us apart:
Specialist approach to your unique case
We offer a calm, clear, and highly personalised approach to all your property-related needs. This means you benefit from our deep, nuanced expertise in additional conveyancing services such as remortgaging a property and transfer of equity, including complex scenarios and intricate leasehold considerations.
Ongoing guidance from your dedicated solicitor
You’ll work directly with a consistent team, guaranteeing continuous communication and support from the moment you instruct us until your property matters are resolved. This continuity means you’re always up-to-date and never need to repeat vital information – a key reason many clients return to us for their future property needs.
Expertise in complex buying scenarios
Our team regularly navigates challenging property scenarios, such as those involving complicated titles, specific property covenants, or unexpected issues that may emerge during a remortgage or transfer of equity. Our experienced conveyancing solicitors are adept at resolving these complexities swiftly, ensuring your property transaction remains on track.
Clear, jargon-free guidance
The process of managing your property’s legal aspects can often feel overwhelming. We simplify everything into clear, manageable steps, explaining legal concepts in plain English. Our approach ensures you fully understand each stage, and you’ll receive regular updates whenever something changes in your remortgage or transfer of equity transaction.
Transparent fee structure
We believe in complete transparency regarding costs. Our fees for guidance on remortgaging a property or transfer of equity are competitive and clearly outlined upfront, giving you financial certainty and peace of mind without any hidden charges or unexpected surprises.
How do you remortgage a property?
1. Instruct your solicitor
Once you have agreed on the terms of your new mortgage with the lender, you will be asked to provide details of your appointed solicitor. When looking for the right solicitor for you, it is important to consider not only costs, but also to check that the solicitor is the right person to guide you through the transaction, as well as one that understands your expectations and is able to fully meet them. We will be happy to discuss this matter with you and provide you with a free, no-obligation, quotation.
2. Provide evidence of your identity
At the start of the transaction, we will need to carry out some standard identification checks. This will require that you produce proof of your identity and address. This can be by way of either producing your passport or photocard driving licence, along with a utility bill or bank/building society statement dated within the last three months. If, for any reason, you are unable to attend our offices, in certain circumstances, we would be prepared to accept copies of these documents that have been certified by another solicitor.
3. Complete the property information forms
Whilst you are not selling the property, we will still require you to complete online the Law Society’s Property Information Forms, so that we can ensure that we have details of all works you have done to the property and relevant certification for works carried out.
4. Carry out Titles and searches
Once we have received a copy of the mortgage offer, we will be able to check the lender’s requirements in relation to searches. Some lenders require full Local, Environmental and Water and Drainage Searches, whilst others will accept No Search Indemnity Insurance. We will also obtain a copy of your Title from the Land Registry and check that the property benefits from any required rights and that there are no onerous or breached covenants or restrictions.
5. Sign the Mortgage Deed
We will report to you on the mortgage offer and send you the Mortgage Deed to sign and return. At this time, we will contact your existing Lender for details of the amount they require to redeem your current mortgage and release their charge registered against the property.
6. Pre-completion
Once we are satisfied that the property is good and marketable from your Lender’s perspective, then we will undertake our pre-completion searches and request funds from your new Lender.
7. Completion
On the day of completion, we will transfer monies to redeem your existing mortgage and forward any balance due to you. We will register the new mortgage with the Land Registry and provide you with updated copies of the Title upon receipt of the same.
What is a Transfer of Equity?
A Transfer of Equity is a change in the ownership status of a property. This may arise as a result of wanting to add a spouse to the Title or remove an ex-partner following divorce. It can also include changing the percentage shares owned by the co-owners of a jointly owned property or buying out a co-owner’s share in the property.
The process for enacting a Transfer of Equity is as follows:
1. Obtain a copy of the Title
Once instructed, we will obtain a copy of the Title from the Land Registry. This will enable us to ascertain the name or names that the property is currently registered under. You should be aware that a Transfer of Equity has the potential to create a conflict of interest between the parties to the Transfer. For this reason, it is common for each party to instruct their own solicitor.
2. Provide evidence of your identity
At the start of the transaction, we will need to carry out some standard identification checks. This will require that you produce proof of your identity and address. This can be by way of either producing your passport or photocard driving licence, along with a utility bill or bank/building society statement dated within the last three months. If, for any reason, you are unable to attend our offices, in certain circumstances, we would be prepared to accept copies of these documents that have been certified by another solicitor.
3. Check your mortgage
If there is a mortgage on the property, the consent of the Lender to the Transfer will need to be obtained, and you should be aware that the Lender may charge you an administration fee for this. The Lender may also wish for any incoming party to become a party to the mortgage, or they may change the terms of the mortgage before agreeing to the Transfer. In the event that the Lender does not give their consent to the mortgage, then if you wish to proceed with the Transfer, you may need to remortgage with another Lender to redeem the existing mortgage.
4. Register the Transfer Deed
We will prepare the form of Transfer, which will be sent to all parties for signature. Once we hold the signed Transfer, we will complete the Deed and register it with the Land Registry. We will provide you with a copy of the updated Title upon receipt of the same.
5. Pay Stamp Duty
It is important to be aware that there are Stamp Duty implications to a Transfer of Equity. In some circumstances, there are exemptions, which means that Duty is not payable. This may include transfers pursuant to divorce settlements. However, in most other cases, Stamp Duty will be assessed in the normal way. The following two examples are useful by way of explanation:
Example 1
A property has a value of £180,000.00. Peter, as owner of the property, has equity of £90,000.00 and an outstanding mortgage of £90,000.00. Peter transfers a half share of the property to his partner Claire.
Claire:
- Pays cash for half of the equity – £45,000.00
- Takes responsibility for 50% of the outstanding mortgage – £45,000.00
So the consideration for SDLT is £90,000.00, made up of the:
- Cash payment
- 50% share of the outstanding mortgage
As £90,000.00 is below the current Stamp Duty Land Tax threshold, there is no tax to pay, albeit that HMRC will need to be notified and we will attend to this on your behalf following completion.
Example 2
John owns a property valued at £500,000.00 with an outstanding mortgage of £400,000.00. John transfers half the property to his partner Anne when they marry. Anne takes on 50% of the mortgage (£200,000.00).
HMRC charge Stamp Duty Land Tax on the amount paid for a property or the amount of ‘consideration’ given.
This amount will need to be paid to HMRC upon completion of the Transfer of Equity and funds will need to be with us to meet this liability prior to completion.
Ready to get started?
Whether you need assistance with a property remortgage or a Transfer of Equity, our experienced conveyancing solicitors are here to help. Call your nearest office or email us at [email protected], and we’ll get back to you promptly. Alternatively, you can fill out our contact form above.
