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  • FIRST POST
    • Ferdy9
    • By Ferdy9 14th Jun 17, 7:50 PM
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    Ferdy9
    Why is Transfer of Equity so complicated?
    • #1
    • 14th Jun 17, 7:50 PM
    Why is Transfer of Equity so complicated? 14th Jun 17 at 7:50 PM
    A few years ago, I agreed to add my name onto my brothers mortgage to help him get onto the housing ladder. I have not contributed anything financially and am not expecting anything back.
    It is now time where he is looking to re-mortgage and as I am looking to buy my own property soon, thought it would be best to remove my name from his mortgage / deeds etc.

    I would think this would be a straightforward transfer of equity from myself to him.
    However, the mortgage providers are charging him £400 for a Transfer of Equity and said that I would need to find my own solicitor to do the same process (costing another £400 im guessing).

    Does anyone know how this process works?
    Why would we both need to fork out money for solicitors to do the same process?
    Surely if his providers are processing the ToE then nothing more needs to be done?

    Any help would be greatly appreciated.
Page 1
    • G_M
    • By G_M 14th Jun 17, 9:08 PM
    • 41,460 Posts
    • 47,841 Thanks
    G_M
    • #2
    • 14th Jun 17, 9:08 PM
    • #2
    • 14th Jun 17, 9:08 PM
    He can simply apply for a new mortage in his sole name.

    The problem is not that your name is on the property Title deeds and must be removed. It is that mortgages are involved both with the sale and the purchase.

    With no mortgage, you could easily DIY this (form TR1 etc submitted to Land Registry with the application fee - about £40?).

    * Seller: you and brother. Solicitor required to
    a) give the buyer an undertaking to remove current Charge on the property once the funds are received from the buyer
    b) represent the lender and remove the current Charge


    * Buyer: brother. Solicitor required to
    a) represent the new lender
    b) ensure an undertaking is made by the seller that the existing Charge will be removed
    c) place the new lender's Charge on the Register
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