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.
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 are usually additional fees payable* 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 acquired in the property. A party already on the deeds will be entitled to his or her share of equity.
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. NB; 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.
MY OTHER SERVICES INCLUDE:
Acting for anyone Buying, Selling or Remortgaging In England or Wales
I am a:
• Solicitor of 23+ years
• SRA & CQS Regulated
• Help to Buy Accredited
• Recommended - Trustpilot & Yell.com
Instruct me for your:
• Transfer of names on deeds & mortgage
• Equity Release & Lifetime Mortgages
• Bridging Finance
• Auction Property
• Leasehold matter
• Freehold matter
• Trust Deeds & Declaration of Trusts
• ID1 Forms (HMLR)
• Statutory Declarations
• Independent Legal Advice
• Shared Ownership or Shared Equity
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