Updated: Aug 27
This Is where the names on the property deeds do not match the names on the mortgage offer.
They have to match to satisfy the mortgage lender. Therefore your conveyancer must change the names via a Transfer Deed.
This 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 a Transfer of Equity is required.
The consideration in the Transfer (or payment element) is based on the existing mortgage paid off plus the equity in the property.
A party going on the deeds is getting the benefit of any equity in the property so usually there is some sort of consideration, or Gift element.
A Transfer Deed also requires submission to the Revenue of a Tax Return and Duty may be payable. This may be higher rate Duty should you own more than one property at this point
(*Unless your 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 often discovered post instructions when deeds and office copies are received.