What is a transfer of equity

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A transfer of equity is where you look to remove or add someone onto an existing mortgage. Many lenders treat this in different ways, for example, most see the process as a simple type of remortgage, whilst others may have additional rules. The mortgage that was originally entered into is a legal agreement, you have to repay the money that has been lent you. If you enter this together it is a joint and equal commitment. Unfortunately, this situation can change and the time may come, either through a relationship breakdown or simply by choice, that someone wants to come off the mortgage.

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One thing to remember is that lenders do not have to remove a name. If the mortgage is unaffordable for one person then the other person has to stay on. This can make applying for other credit, especially mortgages,  difficult as you will still be named, and liable.

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It also needs additional legal work to make the change. This can be a lengthy process with a variety of forms that need completion, as you are making a big change to a legal agreement that usually involves a considerable amount of money. Lenders do not provide this service and you will need the help of Ascot solicitors https://www.parachutelaw.co.uk/. The legal costs are called “disbursements”. This is an overall saying that basically means any fees and costs of legal work and the amount of time that the Solicitors will spend on it.

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