Transfer of Equity Explained, Changing Names on Deeds & Mortgage

Emma Selfridge Lawyer
Jan 4
3 min read

This Is where the names on the property deeds do NOT match the names on the new mortgage offer. They must match to satisfy your new mortgage lender and provide good security for the loan.

A Transfer of Equity often occurs with a remortgage and can be required when a couple separate or a new couple take out a mortgage together. Please see my article on remortgages for more details and in particular a step by step account of the legal process involved. There are more steps than you may think and a remortgage is not instant.

Your Conveyancer will change the names using a Transfer Deed (TR1). We call this process a Transfer of Equity. if you are also remortgaging it will be simultaneous.

Some Transfer of Equity are complex and require the mortgage lender’s consent to the transfer and signature on the TR1 Transfer Deed. This is usually where one of the parties is coming off the mortgage and deeds but the same mortgage product and the same lender will remain. In order to proceed you would need to apply to the existing Lender and obtain consent to remove a party. The lender will need to check affordability before this can proceed. Each lender will have their own terms and conditions and no two lenders are the same. This can also apply where you port the Mortgage product. These issues will tend to delay Completion as Mortgage Lenders are slow with cumbersome requirements. Most lenders still use fax for example, and struggle to process any correspondence quickly. The mortgage lender will generally require an up-to-date valuation of the property (so they can confirm the current value on the open market) and they may need to sign the Transfer Deed which will take time.

A Transfer of Equity can be a change of names from 2 to 1, or from 1 name to 2. In other words co-owners splitting up or a new couple moving in together. There are usually additional legal fees and disbursements payable* where you are remortgaging and a Transfer of Equity is also required.

Duty could also be payable and higher HM Land Registry fees are involved where there is a d to register. The consideration in the Transfer (or payment element) is based on the existing mortgage paid off (the debt) plus the equity already acquired in the property and or any money changing hands. A party already on the deeds will be entitled to his or her share of equity in the property.

You will also need to submit to the Revenue a Tax Return and Duty may be payable due to the consideration. This may be higher rate Duty if you (or your partner) own more than one residential property. The property in question needs to be your main residence if you wish to avoid higher rate duty. Duty is self-assessed but Conveyancers act as agent and submit the Return on your behalf. However, you remain responsible for the contents of the Return and can be pursued if these are inaccurate and the Revenue does not receive the relevant duty payable.

*Unless your conveyancing quote was for BOTH a Transfer of Equity and Remortgage.

NB: Your Conveyancer will not necessarily know at the time of quoting whether a Transfer is also required. This is frequently discovered on receipt of client care, deeds, office copies from Land Registry and mortgage offer. If you want your quote to be accurate, then advise the Conveyancer as to who is currently named on the deeds and who will be named on the eventual mortgage offer.

I am a fully regulated solicitor with some 25+ years experience in the profession.

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Acting for anyone Buying, Selling or Remortgaging In England or Wales

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• Transfer of names on deeds & mortgage

• Equity Release & Lifetime Mortgages

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