Transfer Of Equity: The 5 Key Steps, The Tax And How Long It Takes

A transfer of equity is the legal process of changing who owns a property without selling it. You add someone to the title deeds, remove someone, or change the shares. At least one existing owner usually stays on. It needs a signed deed, the lender's agreement if there is a mortgage, and registration with HM Land Registry.

This guide covers England and Wales. The tax section covers England only: Wales has its own Land Transaction Tax.

What a transfer of equity is

"Equity" here means ownership. Unlike a sale, the home does not change hands completely: same property, often the same lender, different names on the deeds.

Two fixed rules apply:

• No more than four people can be on the legal title. If more own it, the first four named hold it for everyone.
• Every current owner who is giving up a share must sign the transfer.

Why people do it

The usual reasons:

• Marriage or moving in together. One partner owns the home and wants to add the other.
• Separation or divorce. One person keeps the home and the other comes off the deeds, often in return for a payment.
• Buying a partner or co-owner out. One owner pays the other for their share.
• A gift to family. A parent adds a child, or gives them the home outright.

Each one carries different tax results. A divorce is treated very differently from two unmarried partners splitting up, even when the figures are the same.

The 5 key steps

1. Check the title and agree the deal

Your solicitor starts with the register at HM Land Registry. It shows who owns the property now, the mortgage, and any restrictions that need someone's consent before ownership can change.

Everyone then agrees the deal: who owns what share, whether money is paid, and who pays the mortgage.

2. Get the lender on board

If there is a mortgage, the lender has to agree to the change. It will usually want to know that whoever is left on the mortgage can afford it. In practice that often means a remortgage, or an application to the existing lender to add or remove a borrower.

One point people miss: coming off the deeds does not, on its own, take you off the mortgage. Only the lender can release you from the debt.

3. Identity and money checks

Solicitors must identify and verify everyone they act for. On a buy-out, they may also need to check where the money comes from. Have photo ID, proof of address and bank statements ready.

4. Prepare and sign the transfer deed

The transfer is made by deed, usually Land Registry form TR1 (transfer of whole of registered title). It records who is transferring, who is receiving, any money paid, and how the new owners will hold the property.

Each person signs in front of a witness. The witness:

• must be physically present when you sign. A video call does not count.
• cannot be a party to the deed.
• is best not your spouse, civil partner or partner, even though the law allows it.
• should be an adult.

5. Complete, pay any stamp duty and register

On completion, any money changes hands and any new mortgage starts. Your solicitor then:

• files a stamp duty return and pays any tax within 14 days of completion, where a return is needed.
• applies to HM Land Registry on form AP1, with the transfer, evidence of identity and the fee.

Once registered, the new names appear on the title.

Joint tenants or tenants in common?

If more than one person will own the home after the transfer, you choose how you own it together:

• Joint tenants own the whole property equally. If one dies, the property passes automatically to the others. You cannot leave your share in a will.
• Tenants in common can own different shares, such as 70/30. Your share does not pass automatically on death; you can leave it in your will.

The transfer deed records this in its "declaration of trust" panel. If you do not say you are joint tenants, the Land Registry adds a standard "Form A restriction" to the title.

This choice matters most when partners have put in different amounts, or have children from earlier relationships. We explain the two options in more depth in what joint ownership of a home means.

Tax on a transfer of equity

Stamp duty: the mortgage counts as payment

Stamp Duty Land Tax (SDLT) is charged on what HMRC calls the "chargeable consideration". On a transfer of equity that is:

• any cash paid for the share, plus
• the share of the mortgage the new owner takes on.

So stamp duty can be due even when no money changes hands.

The bands for a home in England are: nothing up to £125,000, 2% on the slice from £125,001 to £250,000, then 5% up to £925,000.

Example 1: adding a partner. A home is worth £400,000 with a £240,000 mortgage. The owner adds their partner as a 50% owner. The partner pays nothing but takes on half the mortgage: £120,000. That is under £125,000, so there is no stamp duty. But because it is £40,000 or more, a return must still be filed.

Example 2: buying out an ex-partner. An unmarried couple own a £450,000 home equally, with a £250,000 mortgage. One buys the other out, paying £100,000 cash and taking on the other's half of the mortgage, £125,000. The chargeable consideration is £225,000. Stamp duty is 2% of £100,000: £2,000.

Three rules change the answer:

• Divorce and dissolution. A transfer between spouses or civil partners under a court order or agreement because they are divorcing, dissolving a civil partnership, annulling the marriage or legally separating is exempt. No return is needed. In example 2, a married couple divorcing would pay nothing. The exemption does not apply if anyone else is part of the transfer, and it does not apply to unmarried couples.
• A gift with no mortgage attracts no stamp duty and no return.
• Higher rates for additional properties. If the person taking the share owns another home, the extra 5% can apply. It does not apply to a transfer to your spouse with no one else involved, or where you already own at least 25% of a home that has been your only or main home for the previous three years.

Capital gains tax

If the property is your only home and you have lived in it the whole time, Private Residence Relief usually means no capital gains tax.

For a buy-to-let or second home:

• Transfers between spouses and civil partners living together carry no capital gains tax at the time.
• Separated spouses and civil partners now have until the end of the third tax year after the one in which they stopped living together, or until the divorce is granted if sooner. Transfers under a formal divorce agreement or court order have no time limit. These rules apply from 6 April 2023.
• A gift to anyone else, such as a child, is treated as if you sold the share at its market value. There may be tax to pay even though you received nothing.

Any capital gains tax on UK property usually has to be reported and paid within 60 days.

Inheritance tax

Gifts between spouses and civil partners are, as a rule, free of inheritance tax.

For a gift to anyone else, the seven-year rule applies: if you live seven years after the gift, there is normally no inheritance tax on it. But if you give your home away and keep living in it without paying a market rent, the seven-year rule does not apply. The gift is treated as still part of your estate. The exception is when you give away only part of the home and the new owners live there with you.

If you are thinking of putting your home into a child's name, take advice before you sign anything.

What it costs

There are up to four costs:

• Legal fees. We give you a written fixed quote before work starts.
• HM Land Registry fee. If no money is paid, the fee is worked out on the value of the share being transferred, less the mortgage, and is £20 to £140 when your solicitor applies online. If money is paid, it is based on the price, from £20 to £500 online. In example 1 above, the fee would be £20.
• Stamp duty, if the chargeable consideration is over the threshold.
• Lender costs, such as an arrangement or valuation fee, if you remortgage.

How long it takes

The legal work moves at the pace of the slowest party, which is usually the lender.

HM Land Registry's own figures for July 2026 show over half of applications like this take 13 weeks, and most are finished in about six months. That wait does not put you at risk: your rights are protected from the day the Land Registry receives the application.

Why a solicitor is involved

You can apply to the Land Registry yourself. Most people with a mortgage cannot, in practice, because the lender will usually need a conveyancer to act for it and protect its mortgage.

Even without a mortgage, the costly decisions are the share, the type of co-ownership, the stamp duty return and the inheritance tax position. A solicitor makes sure the deed says what you mean. Our residential conveyancing team handles transfers of equity, including after separation and for gifts within families.

Questions people ask

What is a transfer of equity in conveyancing?

It is the conveyancing work needed to change the owners of a property without a sale. A solicitor checks the title, gets the lender's agreement, prepares the transfer deed, deals with any stamp duty, and registers the new owners at HM Land Registry. The property and often the lender stay the same; only the names change.

Do I need a solicitor for a transfer of equity?

Not by law. But if there is a mortgage, the lender will usually require a conveyancer to act for it, so in practice yes. A solicitor also handles the stamp duty return, explains the joint tenants or tenants in common choice, and makes sure the deed is signed and witnessed correctly so the Land Registry can register it.

Do I pay stamp duty when I add my partner to the deeds?

At standard rates, only if what they give for their share is over £125,000. That includes any cash and the share of the mortgage they take on. If they take on half a £240,000 mortgage, that is £120,000: no tax, but a return is still needed. Spouses transferring as part of a divorce pay nothing and need no return.

Can I take my ex off the mortgage and the deeds?

Only with their signature on the transfer and the lender's agreement to release them from the loan. If your ex will not sign, the court can order a transfer as part of a divorce or dissolution. Coming off the deeds does not end their liability for the mortgage unless the lender releases them.

How much does a transfer of equity cost?

We give you a written fixed quote for the legal work before work starts. On top of that: the Land Registry fee, £20 to £500 online depending on value and whether money is paid; any stamp duty; and lender fees if you remortgage.

How long does a transfer of equity take?

How long the legal work takes depends mostly on the lender. Land Registry registration can then take three to six months, according to its July 2026 figures. Your ownership is protected from the day it receives the application, so you do not need to wait for registration to rely on the change.

Sources

Transfers, mortgage share and stamp duty, divorce exemption, gifts: gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

Mortgage debt as chargeable consideration: gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04040 and sdltm04040a

Divorce and dissolution exemption: gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00550

Stamp duty bands: gov.uk/stamp-duty-land-tax/residential-property-rates

14-day deadline: gov.uk/stamp-duty-land-tax

Higher rates and transfers to a spouse: gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Joint tenants and tenants in common: gov.uk/joint-property-ownership

Four-owner limit, Form A restriction, declaration of trust: gov.uk/government/publications/private-trusts-of-land/practice-guide-24-private-trusts-of-land

Witnessing deeds: gov.uk/government/publications/execution-of-deeds/practice-guide-8-execution-of-deeds

Changing the registered owner, forms TR1 and AP1: gov.uk/registering-land-or-property-with-land-registry/transfer-ownership-of-your-property

Land Registry fees: gov.uk/guidance/hm-land-registry-registration-services-fees

Land Registry processing times: gov.uk/guidance/hm-land-registry-processing-times

Capital gains tax between spouses and after separation: gov.uk/capital-gains-tax/gifts and gov.uk/hmrc-internal-manuals/capital-gains-manual/cg22200

Private Residence Relief: gov.uk/tax-sell-home

Inheritance tax and giving away a home: gov.uk/inheritance-tax/passing-on-home

This is general information about transfers of equity in England and Wales, not advice on your situation. Your own position depends on facts we would need to see.