A transfer of equity is a change of ownership but where at least one of the original joint owners of the property or land transfers or sells their interest to the other owner of the property and adding or removing their name from the title deeds. For this to be done, all parties must agree, including any mortgage, secured lender or building society.
Whether Stamp Duty (SDLT) is applicable depends upon the ‘consideration’ and the nature of the transfer. Couples dissolving a marriage, legally separating or transferring equity by court order will not need to pay SDLT. Similarly, if the property is a ‘gift’ and there is no mortgage, or the property is split equally between two people, there will be no SDLT to pay.
However, if the property is split unequally, or a mortgage is transferred, if the amount that is being transferred (the consideration) is over the SDLT threshold, there may be some tax to be paid. These will change dependent on individual situations, so it’s important to discuss your options with our specialist to determine what your entitlement is.