Reasons why the Transfer of Equity is a Good Idea
The possession of a property can be of great help during the post-retirement years. If there is a financial crisis, you can rent it out or even sell it to stabilise your economic condition. Therefore, when you own a property, you feel a lot more secure about your monetary standing even when you are not working. However, if you own a property jointly, there might be a problem in a few situations.
If you own a property jointly, then a few complications might creep up pertaining to ownership of the house. If you part ways with your spouse, then ownership becomes a huge problem. In such situations, the ownership has to be transferred to a single name.
Separation or divorce is the first most common situation where a transfer of equity is required. Just because the jointly owned property will be singularly owned after the separation, things pertaining to ownership have to be settled. The person leaving the property is usually given a consideration, which means that there is an exchange of monies and the person leaving the property is paid a certain amount of money. However, if the property has a mortgage on it, then the person who is leaving is released from all duties and responsibilities related to the loan. This means that they wonâ€™t be bothered about anything that has to do with the loan. Even the consideration amount that has to be paid is paid by either remortgaging the property or by applying for a second mortgage on it.
The other situation where the transfer of ownership or equity is required is when parents want to give away their property to their children but want to avoid the inheritance tax. The Inheritance Tax is a shockingly large amount of 40 percent. Due to this tax, the property owner may have to pay a huge amount of money and in the process might have to lose a big portion of estate. To avoid this tax, the transfer of equity is a good idea. As a matter of fact, the British government makes around three million pounds every year. So, if the ownership is transferred, the property wonâ€™t be â€˜inheritedâ€™ and hence no tax has to be paid.
Keeping all these factors in mind, you must go online to search for the best equity quotes. Choose the firm which offers the best services at the least price.