Do I Need a Solicitor for a Transfer of Equity?
If you sell your home and it has equity, meaning the price you sell at is higher than the mortgage remaining on the property, then the money the purchaser pays you for the propery goes to pay off the remaining mortgage and any other fees owing (including commissions), and any balance left over (equity) is what you receive from the sale.
When does a transfer of equity take place?
A transfer of equity is when there is a change in the legal ownership of a property by either adding or removing a person from the deeds.
What happens if you have negative equity in Your House?
It’s possible to have negative equity in a home, meaning you owe more money than the home can sell for. This is commonly called being “underwater” on your mortgage. Selling your home for significantly less than you paid is typically done as a last resort.
How can I tell how much equity I have in my house?
However, most people choose to borrow money to buy a home, which means they slowly build equity as they repay the loan with interest each month. You can estimate your home equity by subtracting the amount of money you owe on the home (remaining loan balance) from the amount of money you could sell your home for (market price).
