A Transfer of Equity is the term used to describe a change of ownership where at least one of the original owners remains on the legal title after the transfer of equity is completed. It will typically be done where a couple who own a property jointly separate, or when a couple get together, perhaps when they get married and a property is transferred from one of the couple’s sole names into both names. Provided the transfer leaves at least one legal owner and not more than 4, there can be as many parties involved in a transfer of equity as the situation requires. For example, an ex-husband could be taken off the title and replaced by the new husband.
A gift, is, as the name suggests, a transfer which involves property changing hands with no money or money’s worth being paid to the outgoing owner. This would include a transfer of equity where the person who parts with his interest receives no payment.
If you wish to calculate the equity of your property, simply subtract how much is owed on your property from its current value.
Every conveyancer at Garnett Wilson is dedicated to making the legalities of the transfer of equity process understandable, informative and cost effective.