Transfer of Equity
A transfer of equity is a process whereby the ownership of a property is transferred from one person to another without changing the underlying mortgage. This type of transaction often occurs when one or more owners are added or removed such as in cases of separation, marriage or death. The process requires an agreement between all parties involved in the transaction and involves transferring the legal title in exchange for payment to the seller or other form of compensation. In addition, all necessary documents must be signed and filed with the Land Registry to complete the transfer. It should be noted that if there are outstanding mortgages on the property, they must still be paid off before any transfer of equity can take place.
