Transfer of Equity: How Does It Work?
If you already own a Shared Ownership home and your circumstances have changed, you might have heard the term “transfer of equity.” It’s a legal process that allows you to add or remove someone from the ownership of your property. Whether it’s because of a relationship change, adding a family member to the mortgage, or buying out a co-owner’s share, understanding how this works can make the process feel much simpler.
Here’s a clear overview of what transfer of equity means, why you might need it, and how we can help.
What does 'transfer of equity' mean?
In simple terms, a transfer of equity is when the ownership of a property changes but the property itself doesn’t sell. You’re transferring part (or all) of your share to another person. For Shared Ownership homes, this usually means that one of the existing owners is being added to or removed from the lease and mortgage.
Why do people do it?
There are a few common reasons you might want to transfer equity:
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Relationship changes: when a couple separates or one partner wishes to take on the home independently.
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Family involvement: adding a parent or relative to help with the mortgage.
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Financial updates: restructuring ownership for affordability or refinancing purposes.
Whatever the reason, the process ensures that the legal ownership and financial responsibilities of the property match your current situation.
The step-by-step process with Southern Housing New Homes
1. Notify Southern Housing New Homes The first step is to let us know you’d like to carry out a transfer of equity. Our team will explain what’s needed and guide you through the process.
2. Get your mortgage lender’s consent If there’s a mortgage on the property, your lender must approve the change. They’ll usually need to assess the new owner’s financial position before agreeing to release or add a party.
3. Instruct a solicitor You’ll need a solicitor (and so will the other party involved) to handle the legal side of the transfer. They’ll prepare the paperwork, manage any required signatures, and ensure everything is compliant with your Shared Ownership lease.
4. Pay the relevant fees There are a few costs to keep in mind, including legal fees, your lender’s administration fees, and a Southern Housing administration fee for processing the transfer. These fees will be explained clearly before you commit to anything.
5. Complete the transfer Once we, and your lender have approved everything, and your solicitors have finalised the documents, the transfer is completed. The Land Registry will then update the ownership details officially.
Key documents you'll need
Your solicitor and our team will help you gather the necessary paperwork, but you’ll typically need:
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Identification documents for all parties
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A copy of your lease and mortgage offer
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The property’s valuation or mortgage statement (if requested by the lender)
You can read more about what’s required in SHNH’s Shared Ownership FAQs.
Support from Southern Housing New Homes
Our team understands that property changes can sometimes feel overwhelming, so will aim to make each step as straightforward as possible. From answering early questions to coordinating with solicitors and lenders, our focus is on helping you move through the process smoothly and confidently.
Ready to learn more?
If you’d like to explore the details of Shared Ownership, from buying to selling and everything in between, take a look at our helpful guides and resources.