A guide to transferring equity on a second home.

A Transfer of Equity occurs when an existing owner of a property either adds or removes one or more people to the title (ownership) of the property.  This can occur for a number of reasons such as when a couple get married or separate.

The process of transferring equity on a second home is essentially the same as a primary residence - with a few key differences:

Second home transfer equity

What is the second home transfer of equity process?

Transferring equity in a property from 1 person to another, follows the same process as with a primary residence.

A conveyancing solicitor will draw up a 'Deed of Transfer’ for all parties to sign.

If there is a mortgage, the solicitor will represent the lender’s interests and ensure that the new owner meets the lender's lending criteria.

If a new mortgage is being taken out at the same time, the solicitor will usually complete the remortgage legal formalities.

Once the legal documents are completed and signed, the solicitor will register the new interest at HM Land Registry.

Read more: The Transfer of Equity Process Explained

Do I pay Stamp Duty (SDLT) when transferring equity in a second home?

HMRC’s treatment of transfers of equity are based on the same principles applied to a primary residence.  However, since April 2016 there has been an additional rate of stamp duty for purchasers of second homes.

The stamp duty rate applied when transferring equity would be the same as when buying a second home.  However the tax would be calculated on the consideration rather than the value of the property. 

Read more:  Stamp duty when transferring equity.

*As with all tax matters, SDLT can be complicated.  You should speak to a conveyancing solicitor to confirm your position with respect to SDLT.  To speak to a solicitor, without obligation, call 0800 612 0377.

What if the property is Buy to let?

Privately owned buy to let properties are considered ‘second homes’ and would be treated as such for stamp duty calculation purposes

What if the property is a holiday home?

As with buy to let properties, privately owned holiday homes are considered ‘second homes’ and would be treated as such for stamp duty calculation purposes

Are there any exemptions?

If the consideration is below £40,000 then no stamp duty will be payable.  If the second property is either a caravan, mobile/static home or a boat, stamp duty would not apply.

Get a FREE online quote for a Transfer of Equity

Our transfer of equity conveyancing service is all-inclusive, meaning what you pay is what set out on the quote, with no hidden fees.

Quittance's conveyancing specialists can carry out the transfer of equity work alongside the remortgage if necessary.  Our solicitors are approved to work for all major UK lenders.

To get a quote call 0800 612 0377 or click here to get a transfer of equity quote online.

Helen Goddard, Legal researcher

About the author

Helen is an award-winning legal researcher and author. She is an experienced court litigation report proofreader and has written extensively on legal matters.

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