Sometimes relationships change and you need to take sole ownership of a property.
Whether you’re separating from a partner, changing a business arrangement, or dealing with inherited property, you’ll want to know about your mortgage options.
Ownership is updated with a legal process called a transfer of equity, which changes names on the property deeds. You might also need to remortgage, particularly if you need money to pay the other owner for their share.
Reasons for buying someone out
Property ownership changes happen for many reasons.
A “transfer of equity” legally changes who owns a property, and it’s more common than you might think.
Relationship breakdowns often lead to transfers of equity
If you’re going through a separation or divorce and want to keep your home, you’ll need to remove your ex-partner from both the property deeds and mortgage. This gives you sole ownership and full control of your property.
New relationships can work the other way
You might want to add your new spouse or partner to your property. Adding them to the deeds means they’ll have legal rights to the property, though you’ll need your mortgage lender’s permission if there’s an existing loan.
Inheritance often brings up the need for transfers of equity
When several people inherit a property together, one person might want to keep it and buy the others out. The transfer removes other beneficiaries from the title once they’ve received payment for their share.
Family arrangements sometimes call for ownership changes
Parents might help their children get on the property ladder by adding them to existing property deeds, possibly a buy to let or second property. However, this needs proper legal advice as it affects both property rights and tax positions.
Business property ownership changes
If your business partner leaves or sells their share, you’ll need to update the property ownership. This might mean buying them out or bringing in new partners.
Money matters can prompt transfers too.
Adding someone to your property ownership might help with mortgage payments. Or you might need to remove someone who can no longer contribute. These decisions need careful thought and your lender’s approval.
Each situation brings different challenges, but they all need proper legal handling and often new mortgage arrangements. Getting advice early helps you understand your options and avoid costly mistakes.
What is a Transfer of Equity?
When you change who owns a property without selling it, that’s a transfer of equity.
It’s the legal process of adding or removing names from the property’s title deeds.
Common situations include relationship breakdowns where one person keeps the property, adding a new partner to your home ownership, buying out fellow beneficiaries of an inherited property, or restructuring business property ownership.
The process combines legal work with mortgage arrangements.
In most scenarios a lender needs the people on the mortgage to match those registered as owners. So if the owners change, the mortgage needs to be updated.
Any existing mortgage lender must agree to the transfer since they need assurance that the remaining owners can handle the payments. You’ll need a solicitor to manage the legal aspects, including the Land Registry paperwork.
Stamp duty might apply in some cases, particularly when money changes hands. Your solicitor will advise on any tax implications, which vary depending on your circumstances and property value.
Property ownership can be changed in a few different ways, but at least one of the existing owners has to remain on the deeds:
- Change a joint mortgage into one name
- Change a single mortgage into joint names
- Remove someone from a joint mortgage while also adding a new person
Related reading: How long does a transfer of equity take?
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Finance Options
Getting a mortgage to take over property ownership usually means combining new legal ownership arrangements with a fresh mortgage.
The first step involves working out how much you’ll need to pay the leaving owner. We should say at this point that there is no legal requirement to make any payments, as long as both of you agree.
Let’s say your property’s worth £400,000 with £200,000 left on the mortgage.
That leaves £200,000 in equity. If you’re buying out a 50% share, you’d need £100,000 plus enough mortgage capacity to cover the existing £200,000 loan.
A transfer of equity remortgage often proves the most straightforward solution.
This means taking out a new, larger mortgage to clear the existing loan and release money for the buyout. Using our example, you might remortgage for £300,000 – covering both the existing £200,000 mortgage and the £100,000 needed for the buyout.
Your monthly payments would increase to reflect the larger borrowing. A £300,000 mortgage over 25 years could cost around £400 more per month than the original £200,000 loan, depending on interest rates.
Depending on your age, and the lender, it may be possible to extend the mortgage term, to lower the monthly payments.
Savings
Some people use savings or other funds to pay the leaving owner while simply transferring the existing mortgage into their sole name. This still requires lender approval and proof you can manage payments alone, but might save on arrangement fees and higher interest charges.
Bridging loans
It’s not that common to use a bridging loan to settle a transfer of equity. However, if there are other properties, then a bridging loan could be used to raise money quickly and easily to get the transfer done speedily.
No current mortgage
If you currently own a property mortgage-free then you may need to borrow some money to buy out your partner.
Using our simple example of a £400,000 property, if it is owned 50/50 then you may agree to pay £200,000 to take over the ownership.
You can use a transfer of equity remortgage to raise the £200,000 and change the ownership in to your sole name.
Who Can Apply?
Securing a mortgage for a transfer of equity will normally require a new mortgage application.
The lender will make all of the normal checks and will look to confirm your affordability for the monthly repayments.
Even though you may have contributed towards the mortgage for many years, you need to pass the mortgage underwriting process, and fit within the lenders criteria.
For employed applicants, lenders want to see recent payslips and bank statements. If you’re self-employed, expect to show two to three years of accounts or tax returns. Some lenders accept less trading history if you can demonstrate a strong track record.
Your credit record matters but lenders understand that relationship breakdowns sometimes affect credit scores. They’ll look more closely at your recent payment history and overall financial stability.
The property itself plays a key role too. Lenders want to see enough equity remaining after any extra borrowing – usually at least 10-15%. For a £400,000 property, that means keeping at least £40,000-£60,000 in equity after arranging your new mortgage.
Age factors into lending decisions since you’ll need to show how you’ll manage payments into retirement. Some lenders offer mortgages extending into later life, especially if you can demonstrate pension income.
If you’re changing lender, make sure your property is acceptable to them. Most are, but the following can cause issues:
- Non-standard construction
- Steel framed
- PRC concrete
- Ex-council
- Freehold flats
- Flat above a shop
For these you make need to seek out a specialist property mortgage.
Read more: What does non-standard construction mean?
The Application Process
Starting the transfer of equity process means coordinating between several professionals. Your current mortgage lender should hear about your plans first – they might offer to help with the transfer and any extra borrowing needed.
Mortgage lenders arrange a valuation as part of your application, though you might want an independent valuation if there’s disagreement about the property’s worth.
Your solicitor manages the legal transfer, checking nothing prevents the ownership change and handling all documentation. They’ll ensure the leaving owner properly signs away their rights, update Land Registry records, and coordinate with mortgage lenders.
The timeline varies but most cases take 4-6 weeks. Complex situations or disagreements between parties will extend this. Having all paperwork ready and responding promptly to queries helps keep things moving.
Costs include solicitor fees for both legal work and Land Registry changes, mortgage arrangement fees if you’re remortgaging, and possibly stamp duty depending on your circumstances. Your solicitor will provide a full breakdown of expected costs early in the process.
How a Mortgage Broker Can Help
Property ownership changes often involve unique circumstances that benefit from expert guidance.
A mortgage broker who regularly handles transfers of equity knows which lenders offer appropriate deals for your situation.
Consider Sarah’s recent case: after separation, she wanted to keep the family home but had recently become self-employed. High street lenders struggled with her income structure, but her broker found a specialist lender comfortable with her business accounts and offered competitive rates.
Brokers save time by approaching suitable lenders directly, protecting your credit score from multiple applications. They’ll explain different lenders’ criteria, help gather necessary paperwork, and often secure better terms than going direct.
Speaking with a broker early helps you understand your options and plan effectively. They can check potential borrowing amounts and recommend the most suitable way forward based on your specific circumstances.
Ready to explore your options for taking over property ownership?
Frequently Asked Questions
The process usually takes 4-6 weeks from start to finish. This includes getting property valuations, arranging the mortgage, and completing legal work. Complex cases or disagreements might take longer.
Read more: How long does a transfer of equity take?
Yes – you’ll need a solicitor to handle the transfer of equity process. They manage the legal paperwork, deal with the Land Registry, and ensure the ownership change happens properly.
Read more: Do I need a solicitor to buy out my partner?
While having bad credit can make things more challenging, some lenders understand that relationship breakdowns can affect credit scores. Specialist lenders might help if you can show good income and enough equity in the property.
Read more: Can you remortgage with bad credit?
You’ll either need to transfer the existing mortgage into your sole name or take out a new mortgage. Both options require lender approval and proof you can afford the payments alone.
Read more: How to buy someone out of a house
Yes, if your lender agrees to transfer the mortgage into your sole name and you can prove affordability. You’ll still need legal help with the transfer of equity process.
Yes, you could apply for the mortgage jointly with your new partner if they meet the lender’s criteria. The legal process would remove your ex-partner and add your new partner.
Read more: Can you remortgage and add a name?
