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:
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.
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.
*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 7456.
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.
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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 7456 or click here to get a transfer of equity quote online.
How can Quittance help?
Whether you are gifting a property to a child, getting married or separating, or transferring equity for any other reason, our panel of conveyancing solicitors can take care of the legal work for you. Even if you are just looking for advice, we can help.
If you are also planning to remortgage as part of the transfer process, we can complete the remortgage legal work at the same time as your transfer of equity.
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Quittance offer a fixed fee, all-inclusive conveyancing service from £348. To get a quote, call us FREE 0800 612 7456 or use the transfer of equity fees calculator:Get a Transfer of Equity Quote
Puzzled about the
transfer of equity process?
- How does the transfer of equity process work?
- How much does it cost to transfer equity?
- Do I pay stamp duty land tax (SDLT) on a transfer of equity?
- How do I transfer equity in a property with a mortgage?
Get all the answers in our comprehensive FAQ section:Transfer of equity frequently asked questions