Gifted equity remortgages in Northamptonshire

Gifted equity can help you remortgage or take over ownership of a property at a price below market value. It’s commonly used within families — for example, when parents want to pass on equity to children, or when one owner is transferring their share of a property to another.

This guide explains how gifted equity remortgages work and what homeowners in Northamptonshire should be aware of.

What is gifted equity?

Gifted equity is when a property is transferred at a reduced price and the discount acts as a gifted deposit.
For example, if a property is worth £300,000 and a family member sells it for £250,000, the £50,000 difference is gifted equity.

This can help you remortgage or buy the property with little or no cash deposit, depending on lender criteria.

When lenders accept gifted equity

Most lenders accept gifted equity if the gift is from a close family member, the person gifting the equity does not retain an interest in the property, and a formal gifted equity declaration is completed. Solicitors must also confirm everyone understands the transaction.

Why people use gifted equity

Gifted equity remortgages are commonly used for transferring ownership within a family, buying out a partner or relative, reducing the deposit required or keeping a property in the family.

Gifted equity in Northamptonshire

Homeowners across Northamptonshire — including Northampton, Kettering, Wellingborough, Daventry and Towcester — frequently use gifted equity when transferring property within families. Each case is different, so lenders assess them individually.

How the process works

1. A valuation confirms the current market value
   
2. The gifting party confirms how much equity is being gifted
   
3. The lender reviews affordability and documentation
   
4. Legal work is completed to transfer ownership 

Benefits and considerations

Benefits include a lower deposit requirement, keeping property in the family and supporting first-time buyers. Considerations include legal work, lender rules and the need for correct documentation.

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