Transfer of equity-dont understand?

Sandie11

Hi
Just some advice, I am buying out my brother in a property we inherited and the solicitors have said the transfer of equity ect would cost upto £600.

I just want to understand what needs to be done a little better.

I am paying him a sum of money to gain his share, and therefore want his name taken off of the land registry and mine to remain on there and possible my wifes as well (still not sure if to do this due to tax issues as want to rent out the property and my wife is a higher rate tax payer)

Any advice appreciated

kingstreet

Is the property mortgaged?

If it is, you'll have to gain the lender's approval to the transfer before involving a solicitor.

Once you've done that, the solicitor will handle the lender's legal work and do the transfer for you.

The cost you've quoted sounds a little high for a party off transfer. Is there anything else you've left out?

G_M

If there's no mortgage at present, AND you are buying without taking out a mortgage, you could do the Title transfer yourself.

Get a book from the library to understand a bit about property Title; Read up the Land Registry site, and speak to the Land Registry about the forms you need to use - they are very helpful.

Sandie11

Hi

Yes I am getting a mortgage to buy the other share out and the solicitors attached to the mortgage lenders have advised these costs.
This is what they say:

Thank you for your email dated the 10th June 2011. We charge a fixed £250+VAT for doing a transfer of equity, plus disbursements. For a 2-2 transfer we estimate the costs to be in the region of £550-£600. This is because there is additional work involved in preparing assignments of beneficial interest and disbursements to third parties. In order to provide you with a more accurate quote we would need the following information;
Ø The Valuation of the Property
Ø The proposed mortgage Advance
Ø Estimate of current mortgage debt
Ø Details of any money changing hands or confirmation the transfers are by way of gift
Ø Details of how the Property is held now and how you propose it is held following completion, (Joint Tenants or Tenants in Common in set shares)

I would be more than happy to do the forms myself but not sure if it was perhaps to involved.

Thanks for your input

G_M

If there's mortgage involved the lender will insist on using a solicitor - at your cost.

Those costs don't seem unreasonable, subject to what the disbursements are.