When we talk about transfer of equity, we are typically referring to the equity that an individual, or people, may have in a property. The term can also refer to stocks and shares, but this is a specialist area and covers something slightly different, although the premise is the same. Transfer of equity simply means transferring something that you own – in this case property equity – to someone else.
What is equity?
Equity in the context of property refers to the c, less the outstanding mortgage. It is the financial value that is wholly owned by you.
Why do people want to transfer equity?
A transfer of equity can occur for a variety of reasons. One common one is when an individual wants to share their property ownership with a partner, to grant them security in the form of a co-owned asset that they will usually live in together. Another instance is where a parent might want to share ownership of a property with their children, to offer them some financial security.
Equity can also be transferred back to an individual. An example could be when a couple separates, and the departing individual transfers his or her share back to his/her partner so that they own 100% of the former shared home.
How is equity transferred?
The transfer of equity is carried out via legal processes that are usually delivered by a transfer of equity solicitor such as https://www.parachutelaw.co.uk/transfer-of-equity-solicitor. By using a transfer of equity solicitor, the process is kept slick and efficient and can be carried out without any delays.
A transfer of equity solicitor can also offer advice on which approach to the process is best for your situation, as well as the form of ownership that will be best for you.