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A transfer of equity is when ownership of a property in Scotland changes without a full sale. At least one original owner stays on the title, while another person is added or removed. For example, a spouse may be added after marriage, or a former partner removed following separation.
There are many situations where a transfer of equity may be required in Scotland. Some of the most common include:
When couples separate, one partner may wish to remain in the property while the other is removed from the title. For example, in a divorce settlement, one spouse may buy out the other’s share of the home so they can retain ownership. The transfer ensures the legal title reflects the new arrangement and avoids future disputes.
It is common for people to add a spouse or civil partner to the title after marriage or when entering into a long-term partnership. This allows both parties to share legal ownership of the property, protecting their interests and making sure the home is recognised as jointly owned.
Where two or more people own a property together, one may wish to buy the other out and take full ownership. For example, if siblings inherit a property but one wishes to keep it as their home, they may purchase the other sibling’s share through a transfer of equity.
A transfer of equity can also be used to gift property shares to children or relatives as part of succession or estate planning. For example, parents may transfer part of the family home to their children during their lifetime. This can help with future inheritance planning and ensure ownership passes smoothly.
Sometimes, lenders require a transfer of equity when someone is added to or removed from a mortgage. For example, if a partner is contributing to mortgage payments, the lender may insist they are added to both the mortgage and the property title. Likewise, if a borrower is removed from the mortgage, their name will usually also need to be removed from the title.
We order the Land Register Title Sheet and title plan from Registers of Scotland to confirm the current proprietors, the exact extent of the property, and any Standard Securities (mortgages) or inhibitions recorded against the title.
We review title conditions/burdens (e.g., maintenance obligations, use restrictions, servitudes, factoring arrangements) and look for any survivorship destinations or special destination clauses that may affect how shares can be transferred.
If the title is still on the Sasine Register, we’ll explain the extra steps needed to move it onto the Land Register as part of the transfer.
If there’s a mortgage, your lender’s written consent is essential. The lender may run affordability checks and will usually require the incoming owner to become a borrower.
Where an owner is being removed, the lender must agree to release them from their obligations. Sometimes a new or varied Standard Security is required, or a remortgage is arranged.
We obtain any settlement figures, manage early repayment charge risks, and coordinate timings so consent, funds and signing all line up on the completion date.
The core document is typically a Disposition transferring the share from one party to another.
We may also prepare a Minute of Agreement to record how shares are held (e.g., percentages), who pays what consideration, how any mortgage liability is split, and any indemnities between parties.
If there’s a survivorship clause or other clause needing updated, we’ll prepare the necessary variation wording.
We complete the LBTT return (even if no tax is due) and advise on ADS (Additional Dwelling Supplement) and how assumed mortgage debt can count as consideration for LBTT purposes.
Documents are executed in line with the Requirements of Writing (Scotland) Act 1995) for self-proving deeds: each signatory signs in the presence of one independent witness (over 16), with full name and address stated.
Where appropriate, we can arrange compliant remote/e-signing if accepted by the lender and Registers of Scotland.
We carry out standard ID/AML checks and confirm any occupancy rights (e.g., spouse/civil partner consent) are properly addressed.
Just before completion, we usually lodge an Advance Notice to protect the deed’s priority for 35 days, covering both the title transfer and any new/varied Standard Security.
On the agreed completion date, we settle any funds, submit the LBTT return and pay any tax due, then lodge the registration application with Registers of Scotland along with the LBTT acknowledgment, the signed deed(s) and any supporting plans.
Registers of Scotland process the application and update the Title Sheet to show the new ownership and any updated securities.
After registration completes, we supply the updated Title Sheet to all parties (and the lender), and provide a post-completion pack with next steps such as notifying your insurer/factor, updating council tax and records, and storing the executed deeds securely.
Straightforward transfers — usually 4 to 6 weeks
Where there is no mortgage (or the lender provides consent quickly) and all parties are cooperative, the process can often be completed within one to one-and-a-half months.
Typical examples include adding a spouse or civil partner to the title, or removing a former partner after separation where there are no disputes.
Complex cases — can take longer
Where the property is mortgaged, the timing often depends on how quickly the lender reviews and approves the transfer. This can add several weeks.
If parties are in dispute over share entitlement, valuation, or liabilities, the process may be delayed while agreements are negotiated or court orders are obtained.
Transfers involving tax considerations, trusts, multiple titles, or cross-border elements also tend to take more time.
Ongoing updates and communication
We understand that delays can be stressful, so our solicitors will keep you updated at every stage, from initial checks through to registration.
You’ll always know what has been completed, what is outstanding, and what (if anything) we need from you to keep things moving.
We also provide realistic timescales at the outset, so you can plan around your move, remortgage, or family arrangements with confidence.
Fees depend on the complexity of the transfer.
Registers of Scotland fees — statutory registration cost
Registers of Scotland charge a statutory fee for updating the Land Register.
The fee is set by government and depends on the value of the transaction and the type of application.
LBTT (Land and Buildings Transaction Tax)
A Land and Buildings Transaction Tax return must be submitted for every transfer, even if no tax is payable.
LBTT may be due if:
A share of the property is being bought for cash, or
The incoming party takes on responsibility for part of an outstanding mortgage (this is treated as consideration).
Our team will calculate the position and ensure your return is filed on time to avoid penalties.
Exemptions and reliefs
Certain transactions may be exempt from LBTT, such as:
Transfers between spouses or civil partners (e.g. adding a spouse to the title).
Court-ordered transfers in divorce, dissolution, or separation cases.
We’ll advise if you qualify for an exemption or relief so you don’t pay unnecessary tax.
Other potential taxes — Capital Gains Tax (CGT) and Inheritance Tax (IHT)
Capital Gains Tax may apply if you transfer a share of a second home or buy-to-let property and it has increased in value.
Inheritance Tax considerations may arise if you are gifting a share of property as part of estate planning.
We work alongside your tax adviser or accountant where needed to ensure you are fully aware of any wider tax implications.
