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Transfer of Equity Explained

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 mortgage lender.

Transfer of Equity

Your Conveyancer will change the names using a Transfer Deed (TR1). We call this process a Transfer of Equity. .

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 is usually an additional fee charged* by your Conveyancer where you are remortgaging and it becomes apparent that a Transfer of Equity is required.

The consideration in the Transfer (or payment element) is based on the existing mortgage paid off (the debt) plus the equity already in the property.  

A party being added onto the deeds is benefitting from equity already in the property so usually there is some consideration, or Gift element.

You will need to think about joint ownership (Joint Tenants / Tenants in Common) where going into 2 names. See my other article.

You will also need to submit to the Revenue a Tax Return and Duty may be payable. This may be higher rate Duty if you own more than one property. Duty is self-assessed but Conveyancers tend to act as agent and submit the Return for you.

*Unless your conveyancing quote was for BOTH a Transfer of Equity & Remortgage. Your Conveyancer will not necessarily know at the time of quoting whether a Transfer is required. This is frequently discovered on receipt of client care, deeds, mortgage offer and office copies.


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