Imagine your property title deeds have been passed down through the family for generations, but now you need to find a way to pay off your debts.
What do you do? You turn to equity release! Equity release allows you, if you are over the age of 55, to unlock funds tied up in your home that you can use for any purpose, including paying off debts or buy services like care homes and assisted living facilities.
But, who holds the property title deeds with equity release? Find out in this article!!
How to Find Out if My Property is Registered with HM Land Registry?
HM Land Registry1 is the government department that handles property and land title deeds in England, Wales, and Northern Ireland. To find out if your property has a registered HM Land Registry, you need to visit the HM Land Registry website.
First, you need to enter your property address into this search box on the website:
Then, under “Search Results,” click on “Find Title”. You will then see a list of all properties in England and Wales with registered ownership, as well as other information about your property, such as whether it’s mortgaged or if there are any entries against your title for things like bankruptcy2 or litigation3.
If you are a homeowner and can’t find your land registration, contact the HM Land Registry for an update.
How Do I Obtain a Copy of My Property’s Title Deeds?
One of the first steps to take is to get a copy of your property’s title deeds. This will show you who currently holds them and if it would be possible for you to sell your home. It can also help understand any conditions that might need to be met before selling, like getting permission from family members or selling your car to pay off debts.
The best (and cheapest) way is through solicitors4. You may have additional costs depending on what country you are located in and what office they use, but this should not cost more than £50 to £100. Once obtained, present the deed during an interview with an equity release specialist at the Equity Release Advice Bureau5.
How Do I Find Out Who is on My Land Title with Equity Release?
The best way to find out who is on your land title with equity release is by speaking to an equity release adviser at the Equity Release Advice Bureau. All you need to do is tell them the address of your property, and they can then look through their records for all properties in that area registered as being owned by someone else.
They can also check HM Land Registry records, where it will show all of the people who have a share in your home. This is because, in England and Wales, at least, you can’t release equity on a portion of the house unless there are multiple owners (such as with shared ownership). It could be possible to do this if you live abroad, though, so speak to an equity release adviser for more information.
My Property Isn’t Registered; How Do I Register It?
The HM Land Registry will need to know your property’s full address, its worth, and who its current owner is. You may have to pay a fee for registration, too, which varies according to the location of your home.
But, if you want someone else (such as an equity release provider) or yourself (if you are buying another home), they can’t be registered unless the original title deeds holder gives permission first!
What Happens to My Title Deeds when I Release Equity?
If you take out an equity release plan, you still retain ownership of your property.
If you are the original title deeds holder, your equity release provider will take possession of them to continue with any necessary action.
Title Deeds and Equity Release – Scotland
The Scottish Land Registry6 is responsible for the management of land transactions in Scotland. For those who hold property title deeds with equity release, this means that they are automatically registered as well.
If your home isn’t registered, then an application must be made to HM Land Registry’s local office to get this process done. Still, all other people or companies on the land title will also need to be contacted for their agreement!
Title Deeds and Equity Release – Northern Ireland
It is the Northern Ireland Land Registry7 that handles land transactions in this country. They are responsible for ensuring registration of titles, and their records show who holds property title deeds with equity release.
If you have bought a home from someone else, they will also want to be added to your registry. If not, it could confuse who owns the property and who holds the property title deeds with equity release.
Title Deeds and Equity Release – Wales
The HM Land Registry manages land transactions in Wales, including any records of those who hold property title deeds with equity release. For this reason, it’s essential to ensure registration takes place as soon as possible!
If someone else has a share in your home, they will also need to be on your register too before taking out an equity release plan. If not, it may be challenging to decide which party should determine what action needs taking next!
What Happens to My Title Deeds When I Take Equity Release?
If you take equity release, the ownership of your property will pass from yourself to a third party, such as an equity release provider.
This means that they will be the ones who hold the property title deeds with equity release.
Can Two Parties Hold Shares on Land Title Deeds at Once?
No. For either party to have rights over what happens next and hold the property title deeds with equity release, there needs only to be one person or company registered as owner on the HM Land Registry’s register.
Do I Need Permission From Everyone on the Title Deed to Release Equity?
Yes, the permission of everyone on your land title is needed for you to relinquish ownership over it. If there are other people or companies with a share in your property, they will need to be contacted separately before this can happen!
Why Does It Matter Who Holds the Title Deeds With Equity Release?
The original title deeds holder will have control over their house until they take out an equity release plan themselves.
This means that if you want someone else (such as an equity release provider) or yourself (if you are buying another home), then they cannot be registered unless the original title deed holders give permission first.
Can I Take Equity Release if I'm Not on the Property Title Deeds?
Yes. If you are not on the property title deeds, then it is likely that you will need permission from all of those who were initially registered before they can be passed to someone else.
It’s essential to know who holds the property title deeds because it affects when and how equity can be used. If you are considering using an equity release product for your retirement in the place of a reverse mortgage or home equity loan, make sure that the deed holder on your property’s title has agreed to do so before proceeding with any transactions.
Equity releases allow homeowners over the age of 55 to release funds from their homes, without incurring capital gains taxes, but only if the person holding the deeded assets agrees. There may also be some restrictions on which types of properties qualify; keep these details in mind as well!