The ownership of a property can work wonders for anybody who might live in the fear of facing financial difficulties after retirement. After you retire, you can let it out on rent or even sell it at a good price. However, owning a property can also be bit of a bane in a few conditions, especially if you have a joint ownership of the property.
There are many circumstances in which you might have to transfer the ownership of the property. This usually happens in two kinds of situations. If you own a property jointly with your partner, but decide to part ways or get divorced, the ownership of the property has to be transferred to the name of a singular owner. So if there is a mortgage on the property, the person parting their name from the property does not have to pay any of the loan amounts or take any sort of responsibility pertaining to the loan.
These arrangements at times might require a consideration to be paid to the person who is parting with the property. This is arranged by taking out a loan on the property or by applying for a second mortgage on the property.
The second situation, where a transfer of equity might be required is when parents want to pass on a property to their children without paying an inheritance tax. The inheritance tax is a massive 40 percent and will be a huge waste of money, but this can be avoided if the ownership is transferred to the name of the person who the present owners want to gift the house to. It is a fact that the British government makes a great deal of money through the inheritance tax, about three billion pounds.
The transfer of ownership or equity is a simple process where a simple document called the Transfer Deed or TR1 has to be agreed upon. This deed will be prepared by the solicitor who you choose to present your case. The deed will have to be signed by each member and witnessed, as well, independently for each party. An agreement has to be formed where both the parties have to have to decide whether a consideration is required or not. If it is required, then the papers required have to be drafted accordingly, so that taking a loan or remortgaging the property won’t be a problem. Once this is done, the complete deed has to be witnessed properly. If the property is jointly owned, then the owner has to draft papers which will relive the member, leaving the property, of all responsibilities pertaining to the property, including loans and mortgages.
In these cases you must make sure that you are going to the right solicitor and getting good quotes. It is best to go online and check out the quotes provided. Online quotes can be compared and then the property owner can choose the firm he wants to work with regarding the transfer of ownership or equity of the property.