What is transfer of equity?
Equity: The residual value of a business or property beyond any mortgage thereon and liability therein.
Transfer: 1. To convey or cause to pass from one place, person, or thing to another, To make over the possession or legal title of.
When you look at it that way it can seem quite confusing.
Equity is simply the real value of your property to you. First they look what the value of your property is… I.E £250,000 and then they look at how much is left on your property mortgage I.E £150,000. If this were the case then your equity would be £100,000.
Transfer is simply when the ownership of this equity is changed. This is usually when a property is joint owned by 2 people and this partnership is split up. One of the partners leaves the property and transfers any interest that they may have in the property to the partner that stays in the house. The most common occurrence for this is divorce.
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