Property Ownership Transfer Guide
Transferring property ownership can be overwhelming and riddled with obstacles, including exorbitant fees, confusing legal requirements, and time-consuming paperwork.
At Lawhive, we understand these challenges and are here to turn your daunting property ownership transfer into a seamless experience. We offer access to high-quality legal services at a fraction of the cost.
From initial consultation to final transfer, our user-friendly platform and experienced network of property lawyers are with you every step of the way. What’s more, you can enjoy clear, upfront pricing with no hidden fees, so you know exactly what to expect.
Contact our Legal Assessment Team to find out more and get a fixed-fee quote for the services of a specialist lawyer to assist with your property ownership transfer.
What documents are needed for a property ownership transfer?
What are the tax implications of transferring property ownership?
Do I have to pay Stamp Duty Land Tax when transferring property ownership?
How does property ownership transfer work if there is a mortgage on the property?
How to register a change of ownership after a property transfer?
Why might you need to transfer ownership of a property?
Transferring ownership of a property can happen for various reasons including:
Sale of a property
Gifting property to a family member or friend
Inheritance
Adding or removing a co-owner
Remortgaging or equity release
Business or investment purposes
Ownership disputes
It is important to seek legal advice when transferring property ownership to be sure that the transfer complies with legal requirements and that you understand any tax implications.
What is the property ownership transfer process?
The property ownership transfer process involves legally changing the ownership of a property from one party to another.
Agreement on terms
The first step is for the current owner (the transferor) and the new owner (the transferee) to agree on the terms of the transfer. This includes the sale price (if applicable) and any specific conditions.
Instructing a solicitor
Both parties typically instruct solicitors to handle the legal aspects of the transfer.
Lawhive can provide expert legal assistance at an affordable cost, guiding you through each step of the process. Contact us for a free quote and case evaluation.
Preliminary checks and searches
If required, your solicitor will conduct necessary checks and searches to verify the property’s legal status. This may include title searches, local authority searches, and ensuring there are no existing disputes or issues affecting the property.
Drafting the transfer deed (TR1 form)
The solicitor prepares the transfer deed, known as the TR1 form, which legally transfers ownership from the transferor to the transferee. This document must be signed by both parties.
Payment of Stamp Duty Land Tax
If the transfer involves payment (such as in the case of a sale), the transferee may need to pay Stamp Duty Land Tax. The amount depends on the property’s value and other factors.
Your solicitor will handle the SDLT return and payment on your behalf.
Completion of the transfer
On the agreed completion date, the transfer is finalised. The transferee pays any remaining balance of the purchase price, and the transferor hands over the keys and vacant possession of the property (if applicable).
Registering the transfer with the Land Registry
The final step is to register the transfer with HM Land Registry.
Your solicitor submits the signed transfer deed, SDLT certificate, and other necessary documents to the Land Registry. This updates the official records to reflect the new ownership.
Once the Land Registry processes the transfer, they issue updated title deeds in the name of the new owner. These documents are crucial as they provide legal proof of ownership.
What documents are needed for a property ownership transfer?
The key documents typically required for a property ownership transfer are:
TR1 form
Title deeds
Sale contract
Mortgage details (if applicable)
Proof of identity
Stamp Duty Land Tax return form
Property information form (TA6)
Fittings and contents form (TA10)
Leasehold information form (TA7)
Energy Performance Certificate
Property title plan
What is a TR1 form in property ownership transfers?
The TR1 form, also known as the Transfer of Whole of Registered Title, is the official document used to transfer the ownership of a registered property from the current owner (the transferor) to the new owner (the transferee).
The primary purpose of the TR1 form is to legally document the transfer of ownership and provide all necessary details about the parties involved, the property, and any consideration (payment) made.
It is advisable to have a solicitor assist with this form to ensure all information is correct and complete.
What are ID1 and ID2 forms in property ownership transfer?
An ID1 form is used to verify the identity of individuals involved in property transactions, such as buyers, sellers, or anyone else executing documents related to the property transfer.
An ID2 form is used to verify the identity of corporate entities involved in property transactions. This includes companies, LLPs, and other organisations.
They are required when an individual or corporate entity is not represented by a solicitor or licensed conveyancer who can verify their identity. Both forms must be completed and signed by an approved verifier, such as a solicitor, licensed conveyancer, or other authorised person.
The verifier must confirm that they have seen the original identification documents and that the person matches those documents.
How long does the property ownership transfer process take?
Generally, the property ownership transfer process can take several months. But, this depends on the complexity of the transaction, the responsiveness of the parties involved, and the efficiency of the solicitors and other professionals handling the process.
Stage | Estimated Timescales |
Initial agreement and instruction of solicitors | 1-2 weeks |
Preliminary checks and searches | 2-4 weeks |
Drafting and reviewing contracts | 4-6 weeks |
Signing contracts and exchange | 1-2 weeks |
Completion | 1-2 weeks |
Registration with Land Registry | 2-4 weeks |
Factors that may affect the timeline include:
Complex transactions involving leasehold properties, shared ownership, or multiple parties.
If the buyer needs a mortgage.
If the property transfer is part of a chain
The responsiveness of the buyer, seller, and their solicitors
Delays in receiving search results from local authorities.
In some cases, the transfer process can be expedited. For example, cash buyers who do not require a mortgage, straightforward transactions without complex issues, and proactive solicitors can all contribute to a faster transfer.
Do I need a solicitor to transfer property ownership?
Property transfers involve lots of documents including the transfer deed (TR1 form) and other legal forms.
While it is not a legal requirement to use a solicitor for transferring property ownership, many opt to use one as an expert legal professional can make sure these documents are accurately prepared, thoroughly reviewed, and correctly executed, reducing the risk of costly, time-consuming errors.
A solicitor can also conduct searches and checks, manage the financial aspects of the transfer, and register the new ownership with the Land Registry.
Even in very straightforward cases, such as transferring property between family members without any mortgage or financial considerations, many individuals use a solicitor to make the process easier and quicker.
What are the tax implications of transferring property ownership?
Transferring property ownership can have several tax implications depending on the nature of the transfer. Taxes that may be payable upon transfer include:
Stamp Duty Land Tax
Capital Gains Tax
Inheritance Tax
Income Tax
Value Added Tax (for commercial properties)
In certain situations, some taxes may not be payable. For example, Stamp Duty Land Tax is generally not payable if you’re gifting a property with no mortgage. Or, if you’re transferring property ownership to a spouse or civil partner the transaction is usually exempt from taxes.
Having said that, whether or not tax is payable when transferring property ownership will depend on the nature of the transfer, the value of the property, whether or not there is a mortgage and the relationship between parties. As such, it’s important to seek professional advice from a tax professional.
Do I have to pay Stamp Duty Land Tax when transferring property ownership?
Whether you need to pay Stamp Duty Land Tax (SDLT) when transferring property ownership depends on the transfer and the property's value.
Various SDLT reliefs and exemptions are also available for certain transactions, so it’s important to check if any apply to your situation.
Standard property purchase
In a standard property purchase, you pay SDLT if the price exceeds current SDLT thresholds. The amount payable depends on the purchase price and the SDLT rate at the time of purchase.
If SDLT is due, it must be paid within 14 days of the completion date. Your solicitor will typically handle the calculation, submission of the SDLT return, and payment on your behalf.
Gifts and transfers without payments
If the property is being transferred as a gift or with no payment involved, SDLT is generally not payable, provided there is no outstanding mortgage.
Transfers with outstanding mortgage
If the property being transferred has an outstanding mortgage and the new owner assumes responsibility for the mortgage, SDLT may be payable on the value of the mortgage balance if it exceeds the SDLT threshold.
Transfers between spouses or civil partners
SDLT is generally not payable on property transfers between spouses or civil partners, regardless of whether the transfer is due to a sale, gift, or part of a divorce settlement.
Transfers as part of inheritance
Property transferred as part of an inheritance is usually exempt from SDLT.
However, if the inheritor takes on an existing mortgage, SDLT may be payable on the outstanding mortgage amount.
Can I transfer property ownership to a family member?
You can transfer property ownership to a family member. This type of property ownership transfer is quite common and can be done if you’re gifting property, as part of estate planning, or restructuring property holdings within a family.
How does property ownership transfer work if there is a mortgage on the property?
If you’re looking to transfer property ownership with a mortgage, you have to get the lender’s consent first. They will review the transfer details and may require the new owner to meet their lending criteria.
In this situation, there are typically three options available to you:
The new owner takes over the existing mortgage (transfer of equity)
The current owner pays off the mortgage in full before transferring ownership
The new owner secures a mortgage, either with the same lender or a different one, to pay off the existing mortgage.
If the transfer involves taking over or refinancing the mortgage, SDLT may be payable on the value of the outstanding mortgage if it exceeds the SDLT threshold.
How to register a change of ownership after a property transfer
Registering a change of ownership to a property involves updating the records at the Land Registry.
The process generally includes several key documents, such as the TR1 form (transfer deed), AP1 form to change the register, SDLT certificate (if applicable), ID1/ID2 forms, and mortgage details if there is a new mortgage.
A fee is also payable to the Land Registry, the amount of which depends on the value of the property and whether the application is submitted electronically or by post.
If you instruct a solicitor to assist with your property ownership transfer, they will prepare and submit the forms for you, which can speed up the process.
Why choose Lawhive for your property ownership transfer?
Traditional high-street law firms often charge exorbitant fees for property ownership transfer, putting a strain on your budget.
With Lawhive, you get the same high-quality legal expertise at a fraction of the cost. Our innovative approach combines technology with professional legal support, ensuring you receive exceptional value without compromising on service.
Through us, you get access to our fully vetted network of experienced lawyers ready to assist you at every stage of property ownership transfer. Whether you need advice on legal matters, help with documentation or answers to your questions, your solicitor is just a click away.
Contact us today for more information and a fixed-fee quote for the services of a specialist lawyer.