How to Buy Someone Out of a House Deed

Buying someone out of a house deed in the UK is a common process during divorce, separation, inheritance settlements or co-owner agreements coming to an end. If you jointly own a property and wish to take full ownership, you must legally remove the other person from the title deeds and pay them their share of the equity. This process is known as a transfer of equity, and it involves legal, financial and administrative steps.

This guide explains how to buy someone out of a house deed, what it involves, how long it takes, and what to consider in terms of mortgages, taxes and legal risks.

What does buying someone out mean?

Buying someone out of a property means one person pays the other a sum of money equivalent to their share of the home’s equity, thereby becoming the sole legal owner. This typically happens when two people have joint ownership and decide to separate, or when one party no longer wants to be responsible for the property.

The legal ownership must be updated with HM Land Registry to reflect the change. If there is a mortgage in place, the lender must approve the new arrangement, and the remaining party usually takes on the full responsibility for repayments.

How do you calculate the buyout value?

The starting point is to determine the current market value of the property. A formal valuation from an estate agent or chartered surveyor is recommended, especially if the other party might dispute the figure.

You then subtract any outstanding mortgage balance from the property’s value to calculate the equity. If the ownership is 50/50, and the equity is £100,000, each party’s share is £50,000. To buy them out, you would pay that £50,000, assuming there are no other adjustments for debts, improvements or legal arrangements.

If ownership is held in unequal shares, or if there are other financial interests (such as a declaration of trust or settlement agreement), the calculation must reflect this.

What is the legal process for buying someone out?

The legal process is called a transfer of equity. You will need a solicitor to draft the documents, remove the outgoing party from the title deeds, and update the Land Registry.

The steps include confirming the agreed share to be transferred, applying for any required mortgage changes, signing the transfer deed (TR1 form) and submitting it to HM Land Registry. Your solicitor will also check for any charges on the property and ensure that the transaction meets all legal and financial obligations.

If there is a mortgage, the lender must approve the transfer. They may require a new mortgage application from the remaining owner, who must pass affordability checks to take on the debt alone.

Do you need a mortgage to buy someone out?

If you do not have enough savings to fund the buyout, you can apply for a new mortgage in your sole name. The funds from this mortgage can be used to pay the other person their share. The existing mortgage is usually redeemed and replaced with a new one reflecting the new ownership.

If there is no mortgage on the property and you are simply paying from personal funds, the process is simpler and can be done without lender involvement, although legal documentation is still necessary.

Will you pay stamp duty?

Stamp duty land tax (SDLT) may apply if the amount you are paying (including assuming responsibility for a share of the mortgage) exceeds the SDLT threshold. This is particularly important in buyouts where the outgoing party's share includes part of a mortgage debt. Your solicitor can calculate whether SDLT is payable and complete the required return to HMRC.

There may be exceptions for divorce or dissolution of a civil partnership, but it is always advisable to check whether the transaction qualifies for relief.

How long does it take to buy someone out?

The transfer of equity process typically takes four to eight weeks, depending on the complexity of the transaction, whether a mortgage is involved and how quickly both parties can agree and sign documents. If the case involves a court order or divorce proceedings, the timeframe may be longer.

Can you be forced to buy someone out or sell?

You cannot be forced to buy someone out unless you agree to it, but a court can order a sale of the property if one party wants to exit and no agreement can be reached. In family disputes, courts sometimes order a valuation and enforce a buyout or sale under the Trusts of Land and Appointment of Trustees Act (TOLATA).

If both parties agree on the terms, it is always better to proceed through a solicitor than let it reach a legal dispute.

Conclusion

Buying someone out of a house deed is a common way to take full ownership of a jointly owned property. The process involves valuing the property, agreeing a settlement, updating the legal title and, if needed, securing a new mortgage. While the steps are straightforward with agreement and cooperation, professional legal and financial advice is essential to protect both parties and ensure the transfer is valid. Always use a solicitor to handle the transfer of equity, check for tax liabilities and register the change with HM Land Registry.