Transfer of Equity Explained — Adding or Removing Someone from a Property Title

What is a Transfer of Equity?

A transfer of equity is the legal process of adding or removing one or more people from a property’s title deeds without a full sale taking place. The property remains in situ; only the ownership structure changes.

Common reasons include:

• Adding a new partner or spouse after marriage
• Removing an ex-partner after separation or divorce
• Gifting a share to a family member (e.g. parent gifting equity to a child)
• Restructuring ownership between co-owners

A transfer of equity is recorded at HM Land Registry and will appear in the property’s title register. You can view the current registered owners of any property using Property Passport UK.

How the Process Works

**Step 1: Instruct a solicitor**

You will need a conveyancing solicitor to handle the legal work. Both parties typically instruct the same solicitor, though where there is a dispute (e.g. divorce) each party should have independent legal advice.

**Step 2: Mortgage lender consent**

If the property has a mortgage, you must obtain the lender’s consent before proceeding. The lender will assess whether the remaining owner(s) can afford the mortgage alone. If the person being added has a poor credit history, approval may be refused.

**Step 3: Stamp Duty Land Tax assessment**

SDLT may be payable depending on whether the incoming party is taking on a share of the mortgage. See the SDLT section below.

**Step 4: Land Registry registration**

Your solicitor submits the transfer deed (form TR1) to HM Land Registry, which updates the title register.

The process typically takes 4–8 weeks from instruction to completion.

Stamp Duty Land Tax

SDLT is calculated on the “chargeable consideration”, which in a transfer of equity includes:

• Any cash payment made to the outgoing party
• The incoming party’s share of any outstanding mortgage

**Example:** Property worth £400,000 with £200,000 mortgage. New partner is added with no cash changing hands. They take on 50% of the mortgage (£100,000). SDLT is calculated on £100,000. If it is their first residential property they will likely pay no SDLT (below the nil-rate band threshold).

If the incoming party already owns another property, the 3% higher rate surcharge may apply to the chargeable consideration.

Capital Gains Tax Considerations

If you are gifting a share of property to a family member, HMRC treats the transfer as if it occurred at market value even if no money changes hands. Capital Gains Tax may be due if the property has increased in value since you acquired it, unless the property is your main residence (in which case Private Residence Relief applies).

Always take tax advice before proceeding with a gift of equity.

Costs

• Solicitor fees: £500–£1,500 depending on complexity
• Land Registry fee: £20–£910 depending on property value
• Lender administration fee: £100–£300 (some charge nothing)
• SDLT: variable (see above)

Checking the Title Register

After a transfer of equity is completed and registered, the updated ownership is visible in the HM Land Registry title register. Property Passport UK surfaces this data for every registered property in England and Wales, allowing you to verify that the correct names appear on the title before and after the transfer.