This is what happens when someone is added or removed from the ownership of a property. This could be adding a son, daughter or spouse for example. But this commonly happens when a couple separate and one person is going to buy the other out.
Often the person taking over the property will be taking out a new mortgage to pay off a previous one and to raise additional funds to purchase their former partner’s share of the property. These days it is likely that both parties will need to have their own solicitors because the mortgage companies require it on a
transfer of property.
Even if this is not required by a mortgage company and you are the person coming off the property, it is always a good idea for you to see a solicitor so that the paperwork prepared by the solicitor of your former partner can be checked on your behalf, and so your solicitor can ensure that you receive your money before you are actually taken off the property.
It is important to check that you are not going to continue to be liable for the old mortgage and that there are no other nasty surprises (e.g. other debts) registered against the property that isn’t going to be paid off. Otherwise, this will seriously affect your ability to take out a new mortgage on your own property and for you to move on with your life.
There may also be tax implications on a transfer of equity.
If you are separating from a former partner there may well be other issues that need to be sorted out. If necessary, these can be set out in a separate agreement.
If you need advice regarding a transfer of equity or any other family law matter, then please contact our team on 020 8301 4884 or using the contact form below.
