Transfer of Equity: Step-by-Step Guide | Ally Randall

Transfer of Equity: Step-by-Step Guide, Costs and TR1 Form

A transfer of equity changes who owns a property without selling it. At Ally Randall Solicitors, our residential conveyancing team helps clients across Northwood Hills and the surrounding area with transfers of equity involving family arrangements, separation, marriage, inheritance planning or refinancing. This step-by-step guide explains how a transfer of equity works, how to add someone to a mortgage or remove someone from it, what the TR1 form is, how stamp duty applies and what a transfer of equity costs.

Quick answer: A transfer of equity is when ownership of a property changes but at least one existing owner remains on the title. The usual steps are to agree the arrangement, speak to your mortgage lender, instruct a solicitor, prepare the transfer deed (commonly Form TR1), deal with any stamp duty, sign and complete, and register the change with HM Land Registry. Stamp duty is only due if the chargeable consideration, which includes any mortgage debt taken on, is above £125,000. Our published fee table covers sales, purchases and remortgages, so please ask us for a personalised quote for a transfer of equity.

What Is a Transfer of Equity?

A transfer of equity is when ownership of a property changes, but at least one existing owner remains on the title. The word equity means the part of the property you own outright, which is its value minus any mortgage. People usually transfer equity to add a name to the title, remove a name from it, or change the shares in which owners hold the property.

When Do People Use a Transfer of Equity?

Common reasons include:

Marriage or a new partner: adding a spouse, civil partner or partner to the title
Separation: removing one owner and leaving the other as the sole owner
Family arrangements: adding a child or other relative, for example to help with a mortgage
Inheritance planning: changing ownership as part of wider estate planning
Refinancing: changing the names on the title alongside a new mortgage

Transfer of Equity vs Remortgage vs Selling

A transfer of equity changes who owns the property. A remortgage changes the mortgage but not the owners. A sale transfers the whole property to someone else. Some situations involve more than one, such as removing an ex-partner and remortgaging in one name, so tell your solicitor your full plan at the start.

Transfer of Equity Step by Step

Step 1: Agree the Arrangement and Take Advice

Decide who will own the property afterwards, in what shares and on what terms. Think about how the owners will hold the property, whether as joint tenants or tenants in common, and whether a declaration of trust is needed to record who owns what. If you are separating, the arrangement may form part of a wider agreement or court order, so take advice before you sign anything.

Step 2: Speak to Your Mortgage Lender

If the property is mortgaged, your lender will usually need to approve the change. If you are adding someone to the mortgage, the lender will assess their finances. If you are removing someone, the lender will usually assess whether the remaining owner can afford the mortgage alone. Someone leaving the title usually remains liable for the mortgage until the lender agrees to release them, so ask the lender to confirm this in writing. Ask about any fees, and whether you need a new mortgage instead.

Step 3: Instruct a Solicitor

Your solicitor will check everyone’s identity, explain the process and send a client care letter. If the people involved have different interests, for example in a separation, each person may need their own solicitor, so ask which approach is right in your situation.

Step 4: Check the Title and Prepare the Documents

Your solicitor obtains the official copies of the title from HM Land Registry, checks who owns the property and any restrictions, and prepares the transfer deed. They also prepare a declaration of trust if one is needed, and they liaise with the lender.

Step 5: Work Out Stamp Duty

Your solicitor will confirm whether stamp duty land tax is payable, as explained in the next section.

Step 6: Sign the Documents

The transfer deed is signed by the people transferring, and often by the person receiving the share, with the signatures properly witnessed. You may also sign mortgage documents if the lender is changing the loan.

Step 7: Completion

Completion is when the transfer takes effect. Any payment to the person leaving is made, and any new mortgage funds are used to repay the old one if needed. If stamp duty applies, your solicitor files the SDLT return and pays the tax.

Step 8: Registration at HM Land Registry

Your solicitor applies to HM Land Registry to register the new owners. Until registration is complete, the register does not show the change, so make sure your solicitor confirms when it is done.

What Is the TR1 Form?

Form TR1 is the HM Land Registry form commonly used to transfer the whole of a registered title, which is how most transfers of equity are documented. It is signed as a deed and sent to HM Land Registry with an application to register the change. Your solicitor completes it, so you do not need to prepare it yourself.

Stamp Duty on a Transfer of Equity

You pay Stamp Duty Land Tax (SDLT) on a transfer if the chargeable consideration is more than the SDLT threshold. Chargeable consideration includes any money paid for the share and any share of the mortgage that the person receiving the share takes over. If the transfer is a genuine gift, with no payment and no mortgage liability taken on, SDLT does not normally apply. The residential nil-rate band is currently £125,000, as published on GOV.UK in November 2026.

These simplified illustrations assume standard SDLT rates apply:

Situation	Chargeable consideration	SDLT
Home worth £400,000 with a £200,000 mortgage. A half share goes to a partner who pays no cash but takes on half the mortgage	£100,000	£0
Home with a £300,000 mortgage. A half share goes to a partner who pays no cash but takes on half the mortgage	£150,000	£500

Other rules, such as the higher rates for additional properties, can apply depending on who owns what, so your solicitor will confirm your position before completion.

How Much Does a Transfer of Equity Cost?

Cost	What to expect	Status
Our legal fees	Our published fee table covers sales, purchases and remortgages, so ask us for a personalised quote	Quote needed
Stamp duty	Only if the chargeable consideration is above £125,000	Official rates
HM Land Registry fee	Depends on the type of transfer, so check the current fee scales on GOV.UK	Check scale
Lender fees	Vary by lender, so ask yours	Ask your lender
Remortgage fees if you also remortgage	Our published remortgage fees start from £695 plus VAT for property up to £250,000	Published fee, additional work may affect the cost

Fees may vary depending on the property value, transaction type, title complexity, lender requirements and any additional legal work required. For a figure based on your own plan, request a conveyancing quote.

Tax and Inheritance Planning

Giving away part of a property can have inheritance tax and capital gains tax consequences, depending on your circumstances. Speak to an accountant or tax adviser before you transfer, and consider how the change fits with your Will. Our wills and probate solicitors can help you plan how your property fits into your wider estate.

How Long Does a Transfer of Equity Take?

Timing depends mostly on your lender and on how quickly everyone signs. As an estimate, a straightforward transfer can take a few weeks, and it can take longer if a new mortgage is needed or the lender is slow to respond. Our conveyancing process typically takes around 8 to 12 weeks for sales and purchases, depending on the chain and complexity, and a transfer of equity has no chain.

Common Transfer of Equity Mistakes

Not telling the mortgage lender before changing the title
Assuming that leaving the title also ends your mortgage liability
Forgetting that a share of the mortgage counts towards stamp duty
Not recording who owns what in a declaration of trust
Relying on an informal agreement with a partner or relative
Not taking separate advice when the owners’ interests differ

How We Can Help

Our residential conveyancing solicitors assist with transfer of equity matters involving family arrangements, separation, marriage, inheritance planning or refinancing. Your matter is handled by a dedicated fee earner, and you can meet the team on our team page. You can also learn more about Ally Randall Solicitors or browse our legal services.

We act for clients across Northwood Hills, Northwood, Pinner, Ruislip, Eastcote, Harrow and Watford.

This article is general information, not legal or tax advice. Tax rules and SDLT thresholds are as published on GOV.UK in November 2026 and can change. Figures marked as estimates are approximate.

Speak to Our Conveyancing Team

Call us on 020 8152 8737 or contact Ally Randall Solicitors to discuss your transfer of equity.

Frequently Asked Questions

What is a transfer of equity?

A transfer of equity is when ownership of a property changes but at least one existing owner remains on the title. It is used to add or remove an owner or change the shares, for example on marriage, separation, family arrangements, inheritance planning or refinancing.

Do I pay stamp duty on a transfer of equity?

Only if the chargeable consideration is above the SDLT threshold, which is currently £125,000 for residential property. Chargeable consideration includes any money paid for the share and any share of the mortgage taken on. A genuine gift with no payment and no mortgage liability does not normally attract SDLT.

How much does a transfer of equity cost?

The cost depends on the type of transfer and any stamp duty, HM Land Registry fee and lender fees. Our published fee table covers sales, purchases and remortgages, so please contact us for a personalised quote for a transfer of equity.

Do I need my mortgage lender’s permission?

If the property is mortgaged, your lender will usually need to approve the change, and may assess the affordability of the new owner or the remaining owner. Someone leaving the title usually remains liable for the mortgage until the lender agrees to release them.

What is a TR1 form?

Form TR1 is the HM Land Registry form commonly used to transfer the whole of a registered title. It is signed as a deed and sent to HM Land Registry with an application to register the change. Your solicitor prepares it for you.

Can I add someone to my mortgage without a transfer of equity?

Adding someone to the mortgage does not by itself make them an owner. If you want them to own part of the property, ownership must be transferred and registered, which is done through a transfer of equity.