Transferring equity

Published , updated

For customers who own part or all of their home.

What is transfer of equity?

The following are three different scenarios where transfer of equity applies:

  • Sole to joint transfer is when a sole owner wishes to add their husband / wife etc on the lease as a co-owner of the property.
  • Joint to sole transfer is when there are 2 owners and one wishes to be taken off the property and is bought out of the property
  • Transfer of equity to someone else is when one person is transferring their share/ property to someone else e.g mother to son

In all scenarios, the current owner/s will need to instruct a solicitor to deal with their transfer legally. The sales team will need details of the solicitors dealing with the transfer for our legal processes. 

Application stage

Sole to joint transfer:

A new, incoming owner should complete a contact details form and return with a copy of their passport. The other documents will be signed via solicitors.

Joint to sole transfer:

No forms are required at this stage, however if the property was purchased with a mortgage then the lender will need to provide confirmation that the mortgage can be transferred to the sole named person and they must be satisfied that the staying party can still afford the repayments on their own.

Transfer of equity to someone else:

If this is for a shared ownership property the same criteria and assessment procedure for shared ownership applications will apply (see shared owners buying guide) . The new owner will also be required to complete an application form. On outright (100%) owned properties an application form is not required.

Where an application form is required, the following should be sent to the sales team for assessment and approved before solicitors can be instructed:

  1. A fully completed application form
  2. 3 months most recent payslips,
  3. A copy of passport or driving licence (not passport photo),
  4. Proof of deposit / funds ( 3 months bank statement)
  5. Mortgage In Principle (if applicable)
  6. Any other supporting evidence (eg, Pension letters, Working Tax Credits Awards etc)

If the application is not approved then the transfer cannot proceed and we will inform solicitors or the current owner of our reasons. If approved then we instruct solicitors to progress the transfer.