Free Transfer of Equity Template

DEED OF TRANSFER OF EQUITY

Land Registration Act 2002  ·  Law Of Property Act 1925  ·  England

This Deed of Transfer of Equity (this "Transfer") is made on 1 June 2026 between James Williams and Sarah Williams (the "Transferor") and James Williams and Emma Johnson (the "Transferee"). The Transferor is the registered proprietor of the Property identified below and wishes to transfer the legal and beneficial interest(s) specified in the recitals. This Transfer is executed and delivered as a deed under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989. This document supports and does not replace HM Land Registry Form TR1 (transfer of whole of registered title) and Form AP1 (application to change the register), which must be completed and lodged with HM Land Registry to give effect to this Transfer.

(A) The Transferor is the registered proprietor of the Freehold estate in the property known as:

42 Park Lane, Manchester, M1 1AA

registered at HM Land Registry under Title Number: GM123456 (the "Property").

(B) The nature of this Transfer is the addition of a new legal owner, arising by reason of a relationship change (marriage / civil partnership).

(C) Following registration of this Transfer, the Property shall be held by the Transferee(s) in the capacity set out in Clause 3.

In consideration of the matters set out in Clause 4, the Transferor hereby TRANSFERS to the Transferee all estate, right, title and interest in and to the Property together with all rights, easements, privileges and appurtenances belonging to or enjoyed with the Property. This Transfer is made pursuant to section 52 of the Law of Property Act 1925 (conveyance by deed) and is a registrable disposition under section 27 of the Land Registration Act 2002. The parties acknowledge that, under section 27(1) LRA 2002, the legal estate does not pass until registration and that the application to register the Transfer (Form AP1, accompanied by Form TR1 and evidence of identity under Form ID1) should be lodged with HM Land Registry promptly and in any event within the priority period of any official search.

Following registration of this Transfer, the Property shall be held by James Williams and Emma Johnson as Tenants in Common. As tenants in common, each owner holds an undivided share in the proportions 60% James Williams / 40% Emma Johnson. Each owner's share forms part of their estate on death and can be disposed of by will or on intestacy. The right of survivorship does not apply. The declaration of trust of the beneficial interest shall be recorded on Form TR1 Panel 11 and, where the shares are unequal or the beneficial ownership is otherwise to be recorded, a separate Declaration of Trust is recommended.

This Transfer is made for no monetary consideration. The parties acknowledge, however, that the assumption or release of mortgage debt constitutes chargeable consideration for SDLT purposes under Finance Act 2003 Sch 4 para 8 (or LTT Schedule 4 in Wales), and that the SDLT analysis must take this into account where a mortgage is being restructured as part of this Transfer.

The Transferor transfers with full title guarantee as defined in section 2 of the Law of Property (Miscellaneous Provisions) Act 1994. This means the Transferor covenants that: (a) they have the right to dispose of the Property; (b) they will at their own cost do all they reasonably can to give the Transferee the title they purport to give; and (c) the Property is free from all charges, encumbrances (whether monetary or not) and third-party rights other than those the Transferor does not and could not reasonably be expected to know about.

The Transferee (or their conveyancer) shall submit the application to register this Transfer at HM Land Registry in accordance with the Land Registration Act 2002 and the Land Registration Rules 2003 (SI 2003/1417). The application shall include: (a) completed Form TR1 (transfer of whole of registered title) or, where part only, Form TP1, duly executed as a deed; (b) Form AP1 (application to change the register); (c) evidence of identity for all unrepresented parties (Form ID1 / ID2) as required by rule 17 of the 2003 Rules; (d) any SDLT5 certificate issued by HMRC (or a WRA LTT submission receipt for Wales); (e) payment of the appropriate HM Land Registry fee under the current Land Registration Fee Order. The parties acknowledge that the transfer of legal title is not effective until completion of registration (LRA 2002 s.27).

The Transferee acknowledges that the Property is transferred subject to all matters contained or referred to in the Property and Charges Registers of the title, and subject to all overriding interests within the meaning of Schedules 1 and 3 of the Land Registration Act 2002 (including short leases, interests of persons in actual occupation and legal easements). The Transferee shall observe and perform all positive and restrictive covenants, conditions and restrictions affecting the Property, to the extent enforceable, and shall indemnify the Transferor in accordance with Clause 10.

The Property is subject to a charge in favour of Nationwide Building Society (account reference NBS-12345678) securing an outstanding principal balance of approximately 200,000.00 GBP. The Lender's consent to this Transfer is obtained in writing from the Lender. The parties acknowledge that: (a) under the standard mortgage conditions of most UK lenders, a transfer of equity without prior written consent constitutes an event of default; (b) from the registration of this Transfer, the Transferee(s) (in their new capacity as registered proprietor) shall be jointly and severally liable with the remaining proprietor(s) for the mortgage covenants; (c) where the mortgage is a regulated consumer-credit agreement, the Consumer Credit Act 1974 and the FCA's Mortgage Conduct of Business (MCOB) rules may apply; and (d) the Lender may require the incoming party to be subject to an affordability assessment, to be added to the mortgage as a joint borrower, or to provide a Deed of Covenant.

The treatment of this Transfer for Stamp Duty Land Tax (SDLT) purposes is: exempt from SDLT because there is no chargeable consideration (Finance Act 2003 Sch 3 para 1). Where SDLT is payable, the Transferee is liable and must submit a land-transaction return to HMRC within 14 days of the effective date (Finance Act 2019 amendment to Finance Act 2003 s.76). Chargeable consideration includes the assumption of any existing mortgage debt under Schedule 4, paragraph 8 of the Finance Act 2003 (or Schedule 4 of the LTTADT(W)A 2017). Where the Transfer arises under a court order on divorce or dissolution, Schedule 3 paragraph 3 Finance Act 2003 provides an exemption; transfers for no consideration are generally exempt under Schedule 3 paragraph 1. The parties are advised to seek specialist tax advice before completion.

The Transferee hereby covenants with the Transferor to observe and perform all covenants, conditions and restrictions affecting the Property contained or referred to in the register of title or in any supplemental documents, and to indemnify the Transferor against all actions, claims, demands, losses, costs and expenses arising from any breach thereof on or after the date of this Transfer. This indemnity extends to all positive and restrictive covenants affecting the Property and survives registration of the Transfer.

As the Property is to be held by the Transferee(s) as tenants in common, the parties shall procure that a Form A restriction is entered on the register under section 40 of the Land Registration Act 2002 and rule 94 of the Land Registration Rules 2003 (SI 2003/1417), in the following form:

"No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court."

Application shall be made on Form TR1 Panel 11 at the same time as the application for registration of this Transfer, or by separate Form RX1 if made after registration.

(a) Inheritance Tax: transfers between spouses and civil partners are exempt from IHT under section 18 of the Inheritance Tax Act 1984. Where the transferring party retains a benefit from the Property (for example, continuing to reside in it), the Gift with Reservation rules (section 102 Finance Act 1986) may apply.

(b) Capital Gains Tax: transfers between spouses / civil partners living together are made on a no-gain / no-loss basis under section 58 of the Taxation of Chargeable Gains Act 1992. Private Residence Relief (ss.222-226 TCGA 1992) may be available where the Property is or has been the transferor's main residence.

(c) Matrimonial / family orders: where this Transfer gives effect to an order of the court under section 24 of the Matrimonial Causes Act 1973, section 24A MCA 1973 (sale), the Civil Partnership Act 2004 or Schedule 1 to the Children Act 1989, the terms of the order shall prevail over any inconsistent provision in this Transfer.

(d) Home Rights: where the Property is or has been the matrimonial or civil-partnership home, Home Rights under the Family Law Act 1996 may bind the Property. The Transferor warrants that any registered notice of home rights has been released or discharged prior to registration of this Transfer.

(e) Capacity: each party confirms that they have capacity to execute this Transfer within the meaning of the Mental Capacity Act 2005 and have received, or had the opportunity to receive, independent legal, tax and (where applicable) mortgage advice before signing.

(f) Money Laundering: the parties acknowledge that their conveyancers are required to carry out identity verification and source-of-funds checks under the Money Laundering Regulations 2017 (SI 2017/692).

The parties acknowledge that a separate Declaration of Trust shall be executed contemporaneously to record unequal beneficial shares and to record each party's financial contribution.

This Transfer and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it shall be governed by and construed in accordance with the law of England. The parties submit to the exclusive jurisdiction of the courts of England in respect of any such dispute or claim.

This Transfer is in England (or Northern Ireland) and is therefore subject to Stamp Duty Land Tax (SDLT) administered by HMRC under Part 4 of the Finance Act 2003. The parties acknowledge the following 2024-2026 statutory currency:

(a) Reversion of temporary thresholds — 1 April 2025. The temporary SDLT thresholds introduced by the Stamp Duty Land Tax (Temporary Relief) Act 2023 expired on 31 March 2025. From 1 April 2025: (i) the residential nil-rate band reverted from £250,000 to £125,000; (ii) the band 2-5% rate now applies from £125,001 to £250,000; (iii) the first-time-buyer relief threshold reverted from £425,000 to £300,000; and (iv) the maximum-purchase cap for FTB relief reverted from £625,000 to £500,000.

(b) Higher Rate for Additional Dwellings (HRAD) — 5% from 31 October 2024. The HRAD surcharge increased from 3% to 5% with effect from 31 October 2024 (Autumn Budget 2024 / Finance Act 2024-25). HRAD applies where a Transferee already owns another dwelling worth ≥£40,000 at completion and is not replacing their main residence; for transfers of equity, HRAD can be triggered where the incoming Transferee already owns another residential property anywhere in the world.

(c) Non-resident SDLT surcharge — 2%. The 2% non-resident surcharge under Sch 9A FA 2003 (inserted by FA 2021) continues to apply where any Transferee is not UK-resident for SDLT purposes (180-day residence test).

(d) Practitioner duty. The Transferee's conveyancer is responsible for the SDLT analysis and for filing the SDLT1 return within 14 days of the effective date (FA 2003 s.76, as amended by FA 2019). Specialist tax advice is recommended where the transferee already owns another property, is non-resident, or where the consideration includes the assumption of mortgage debt under Sch 4 para 8.

The parties confirm that they have considered the application of the Economic Crime (Transparency and Enforcement) Act 2022 ("ECTEA 2022") and the Economic Crime and Corporate Transparency Act 2023 ("ECCTA 2023"):

(a) Overseas-entity status. If the Transferor or the Transferee is an "overseas entity" within the meaning of section 2 ECTEA 2022 — broadly, a legal entity governed by the law of a country or territory outside the United Kingdom — the entity must be registered on the Register of Overseas Entities ("ROE") at Companies House and must have a valid Overseas Entity ID ("OE ID") before HM Land Registry will register this Transfer (ECTEA 2022 Schedules 4A-4C; LRA 2002 amendment).

(b) ECTEA restriction. Where the Property is or has been the subject of a relevant disposition to or by an overseas entity since 1 August 2022, an "ECTEA restriction" has been or will be entered in the proprietorship register; no disposition of the registered estate may be registered unless the disposing party is a registered overseas entity (or an exemption under Sch 4A para 6 applies).

(c) Beneficial-owner verification. Each overseas-entity party warrants that the information on its ROE filing (registrable beneficial owners, managing officers, verification statement) is accurate and complete as at the date of this Transfer; that any "registrable beneficial owner" has been identified in accordance with Sch 2 ECTEA 2022; and that any required annual update has been made within 14 days of the update date under section 7 ECTEA 2022.

(d) ECCTA 2023 identity verification. The parties acknowledge that ECCTA 2023 introduces phased identity-verification requirements at Companies House (for directors, PSCs, and persons filing on behalf of a company) under sections 1066A-1066D Companies Act 2006 (inserted by ECCTA 2023), being commenced in stages during 2024-2026; where a corporate Transferor or Transferee is involved, its officers should hold a verified Companies House identity at the date of this Transfer.

(e) Sanctions screening. The parties confirm that they have screened each other against the UK Consolidated List of Financial Sanctions Targets (OFSI) before completion, in accordance with the Sanctions and Anti-Money Laundering Act 2018 and the Money Laundering Regulations 2017.

(a) Entire agreement: this Transfer constitutes the entire agreement between the parties in relation to its subject matter and supersedes all prior understandings.
(b) Variation: no variation of this Transfer shall be effective unless in writing and signed by the parties; where the variation constitutes a disposition of an equitable interest it must comply with section 53(1)(c) LPA 1925.
(c) Severability: if any provision is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.
(d) Third-party rights: a person who is not a party has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Transfer.
(e) Counterparts: this Transfer may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one instrument.
(f) Execution as a deed: this Transfer is executed and delivered as a deed on the date first written above under section 1 of the Law of Property (Miscellaneous Provisions) Act 1989. The limitation period for any claim under this deed is 12 years (Limitation Act 1980 s.8).

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.