Necessity
Transfers of equity require independent legal advice when ownership of a property changes hands, typically among family members or when an individual is added or removed from the property title. This ensures all parties understand the legal and financial consequences.
Implications
There may be tax consequences, such as Stamp Duty and Capital Gains Tax. Additionally, if there is an outstanding mortgage, lender approval may be necessary. The transfer can also affect the parties’ legal rights and responsibilities towards the property, including maintenance costs, debt obligations, and shared use of the property.
Procedure
Parties agree on the transfer terms. A solicitor reviews the legal and financial implications, documents are signed, and the transfer is registered with the Land Registry. Thorough verification of the identities of both parties is conducted to prevent fraud.
Advice Covers
- Tax implications and potential liabilities.
- Mortgage lender requirements.
- Risks of gifting property to family members.
- Impact on any existing relationship dynamics between the transferring parties.
- Understanding how the transfer might affect any existing wills or estate plans.