A transfer of equity is the legal process of changing who owns a property when at least one of the original owners stays on the title. You are not selling the whole property to a stranger. You are adding someone, removing someone, or changing the shares between people who already own it. Most go through it after marriage, on separation or divorce, when buying out an ex-partner, or to add or remove a parent or other family member from the deeds.
It is a small but precise piece of conveyancing. The property stays the same, but the names on the official register change, and that has knock-on effects for the mortgage, for tax, and for who legally owns what share. Doing it properly protects everyone involved, which is why a conveyancer almost always handles it. If you want the wider picture first, our guide to what conveyancing is sets out the basics.
1 When you might need a transfer of equity
You need a transfer of equity whenever ownership of a property changes but it is not a normal open-market sale. At least one legal owner stays the same, and the deeds are updated to reflect the new arrangement. Common reasons include:
- Marriage or moving in together, where one partner adds the other to the title so they share ownership.
- Separation or divorce, where one person comes off the deeds, often as part of a wider financial settlement.
- Buying someone out, where you pay an ex-partner or co-owner for their share and take sole ownership.
- Family changes, such as adding an adult child, removing a parent, or gifting a share to a relative.
- Estate and tax planning, where shares are adjusted for inheritance or other financial reasons.
In each case the property does not go on the open market, so there is no estate agent and no chain. The work is narrower than a full purchase, but the same care still applies to the title, the mortgage and any money changing hands.
2 What the conveyancer and lender actually do
The conveyancer manages the legal transfer and the registration. Your lender controls anything that touches the mortgage. These two roles run side by side, and a transfer rarely completes until both are satisfied. A qualified conveyancer checks the existing title at HM Land Registry, confirms who currently owns what, and draws up the transfer deed (usually a TR1) that records the change.
If there is a mortgage on the property, the lender has a strong interest in any change of ownership. Whoever is named on the deeds is usually expected to be named on the mortgage, and the other way round. So a few things tend to happen:
- The lender has to consent to the new ownership before completion.
- If someone is being removed, the lender will check that the remaining owner (or owners) can afford the mortgage alone, which can mean a fresh affordability assessment.
- If you are buying someone out and need to borrow more, you may be arranging a new mortgage or a remortgage at the same time.
- Existing charges and any second loans secured on the property have to be dealt with so the register is clean.
Because the mortgage and the transfer are tied together, the legal work and the lending decision have to line up. Your conveyancer will liaise with the lender, but a delay on the lending side is one of the most common reasons a transfer takes longer than expected.
Even when someone agrees to come off the deeds, they usually stay liable for the mortgage until the lender formally releases them. Removing a name from the title and removing it from the loan are two separate steps, and both have to happen.
3 Joint tenants and tenants in common
When two or more people own a property together, they hold it either as joint tenants or as tenants in common. A transfer of equity is a natural moment to review which one suits you. The difference matters most when an owner dies or when a relationship ends.
Joint tenants
As joint tenants, you own the whole property together with no separate shares. If one owner dies, their interest passes automatically to the other owner (or owners) under the right of survivorship, whatever a will says. This is common for married couples and long-term partners who want the survivor to inherit the home cleanly.
Tenants in common
As tenants in common, each owner holds a defined share, which can be equal or unequal (for example 70/30 if one person put in a bigger deposit). Your share does not pass automatically to the other owner. It passes under your will, or under the rules of intestacy if you have no will. This often suits unmarried couples, friends buying together, or anyone who has put in different amounts and wants that protected. Many people record the arrangement in a separate declaration of trust.
During a transfer of equity you can move between the two, for example switching from joint tenants to tenants in common when a relationship changes, or setting clear shares when a new owner joins. It is worth taking advice on which structure fits your situation, because the choice affects inheritance and what happens if you later fall out.
4 Stamp Duty and other costs
Stamp Duty (SDLT in England and Northern Ireland, Land Transaction Tax in Wales) can apply to a transfer of equity, but only in certain situations, and it is not charged on the whole property value. It is generally based on the consideration, meaning what the person receiving the share gives in return. The most common trigger is taking on a share of the mortgage debt. Scotland works differently again, with its own tax and a separate conveyancing system.
A few typical scenarios:
- A pure gift with no mortgage, such as adding a spouse to a mortgage-free home, usually has no Stamp Duty to pay.
- Taking on mortgage debt, where the person joining the title becomes responsible for part of an outstanding mortgage, can count as consideration and may bring Stamp Duty into play if it crosses the relevant threshold.
- Buying someone out for cash, where you pay an ex-partner for their share, can also count, and the figures depend on the amount and on whether you already own another property.
The rules and thresholds change from time to time, and there are reliefs for some transfers between spouses or as part of a divorce settlement. Because the exact figures move, do not rely on a number you read online. Check the current rates on the official government calculator, or ask your conveyancer to work it out for your case. Our Stamp Duty guide explains how the tax works in more detail.
A transfer of equity is normally cheaper than a full purchase, since there is no chain and fewer searches. You will typically pay a fixed legal fee plus the HM Land Registry registration fee and any Stamp Duty due. Compare fixed-fee quotes to see the real total for your situation.
5 The transfer of equity process, step by step
Decide who is being added or removed and on what terms, then appoint a conveyancer to handle the legal side. If money is changing hands, agree the figure first.
Your conveyancer reviews the existing HM Land Registry title, confirms current ownership, and contacts your lender to get consent or to start any new borrowing.
The lender confirms it is happy with the new ownership, releases anyone leaving the mortgage, and approves any extra borrowing needed to buy out a share.
The conveyancer drafts the transfer deed (usually a TR1) recording the new ownership. Everyone involved signs it, with signatures properly witnessed.
Funds move between the parties as agreed, any mortgage redemption or new advance is handled, and any Stamp Duty return is dealt with.
Your conveyancer sends the signed deed and any tax return to HM Land Registry, which updates the official record to show the new owners and shares.
A straightforward transfer with cooperative parties and a willing lender can be quicker than a normal sale, often a few weeks rather than the usual 8 to 12 weeks for a house purchase. But lender consent, a separation that is still being negotiated, or a mortgage that needs reworking can all stretch it out. The cleaner the agreement before you start, the smoother it tends to go.
Because the work is more contained than a full move, it suits a fixed fee well. MoveGuide lets you compare fixed-fee quotes from SRA-regulated solicitors and licensed conveyancers, side by side, free and with no obligation, in about 60 seconds, so you can see what your transfer of equity should cost before you commit.