Change in personal circumstances
Frequently Asked Questions
Adding or removing someone from your lease is known as a Transfer of Equity. This occurs when an existing owner of a property either adds or removes one or more people to the title (ownership) of the property. This can happen for several reasons, such as when a couple gets married or separate. If you do decide to do this, you are responsible to cover the costs of this process, regardless whether you are adding, removing or replacing one of the owners.
You will only need to let us know if you wish to do this if you are a shared owner, if you are a 100% leaseholder or freeholder (you own the property outright) you will need to appoint a solicitor to add or remove someone from your lease/title. Your solicitor will then serve a Notice of Assignment on us so that we can update our records of this change.
If you are a shared owner and decide to proceed with a transfer of equity we would need to approve and agree to this transaction, approve any incoming applicants (applicant joining must qualify for shared ownership) and we will also need to approve a re-mortgage.
A transfer of equity may be necessary in the following circumstances:
- Adding a partner or spouse to the title
- When separating from a partner or spouse
- Transferring equity from one partner or spouse to another
- Taking a name off the mortgage
The cost of a transfer of equity can vary on the circumstances and the value of the property, as well as whether you were adding, removing or replacing someone on the deeds, and whether the property is leasehold or freehold.
If you are struggling to keep up with payments due to a change in your financial circumstance, please contact us as soon as possible, as advice can be given and a payment plan can be agreed for arrears.
If you are a 100% leaseholder or freeholder (you own the property outright) you can leave your home to someone else to inherit when you die through a will.
If you are a shared owner your lease will specify how you can do this, and to whom the property can be transferred to. The person inheriting the property will need to qualify for shared ownership and we will need to be notified and approve the new leaseholder. If the person inheriting the property does not qualify for shared ownership, the property will need to be sold and they will benefit from the equity received.
We strongly recommend that you seek legal advice about this to save any complications in the future.