Property owners may wish to change the legal shared equity ownership/status (shared or transfer of equity) of their property for a number of reasons some of which are listed below: 

• Marriage. Following marriage the partners often wish to transfer the shared matrimonial home into joint names. This is called a Transfer of Equity. Unless the party being added to the deeds is paying full market value for the share in the property the law will deem this transfer as a gift or transaction at an undervalue (see below).

• Divorce or separation. Following divorce or separation the partners may wish to transfer a jointly owned property back into the sole name of one of the partners. This is also called a Transfer of Equity and may be deemed in law as a gift or transaction at an undervalue (see below), unless full market value has been paid for the property share, or the property is being transferred as a result of a court order.

• Tax planning. Property owners are sometimes advised by their tax planners or accountants to transfer shared equity of the family home into the name of a child or other family member. This is also a Transfer of Equity and may be deemed in law as a gift (see below).

• Transferring or changing the financial status of shares in the property. Some property owners buy a property jointly but do not wish to own the property on a strictly 50/50 basis.  If this is the case a trust deed is set up to explain the share or shared equity that each partner owns. This trust deed is registered at the land registry. If the property owners later decide to change the percentages a Transfer of Equity would be needed plus the trust deed would need to be changed.

Whatever the reason for the transfer what may appear to be a simple arrangement can be quite complex and legal advice should be sought.