A Deed of Assignment is a document that shall be used where an individual wishes to transfer some or their entire share in the beneficial interest (also known as equitable interest) of a property. Beneficial ownership confers rights of occupation, the right to receive any rents and profits from the land, and the entitlement to the proceeds on a sale of land.

With an Assignment of beneficial interest the title to the legal estate will not change. It is only the entitlement to the beneficial estate that will change.

Assignments of beneficial interests usually take place where it is either not possible or not desirable to change legal ownership, as with assignments of beneficial interests the legal title does not change.

Assignments of beneficial interests are generally used:

• Where a person has a share in the beneficial interest of a property that they no longer wish to retain.
• Where the lender refuses to consent to a transfer of equity. A transfer of equity occurs where the legal ownership of a property changes but at least one of the original legal owners remains as a registered proprietor.
• Where a trustee in bankruptcy wants to realise its beneficial interest in a jointly owned property to a co-owner. The trustee in bankruptcy can assign the beneficial interest by entering into a deed of assignment with the “buying” co-owner and removing the bankruptcy restrictions registered against the title.

Assignments of a beneficial interest must be in writing and signed by the person assigning the beneficial interest i.e. Assignor. No consideration is necessary for an assignment of the beneficial interest, but if no consideration is payable then the assignment should be documented by a deed. This Deed of Assignment contains optional clauses to cater for the eventuality where consideration for the assignment of the beneficial interest is payable or not.

Please note:
 

• To be able to assign a share in the beneficial interest, the beneficial interest must be held as tenants in common or there must have been an act of severance. If you own the property as joint tenants to assign an equitable interest to someone else you need to first sever the joint tenancy and change the legal title to tenants in common, as joint tenants have equal rights to the whole property and as such can't assign any part of it.
• You need to already own the property before you can assign the beneficial ownership you cannot use a deed of assignment on purchase. Unlike a deed of trust that is drafted at the point of purchase, a deed of assignment is drafted at the point you own the property and want to assign some or all of your ownership to someone else.
• You need to check whether there is any legal charge registered against the freehold which prohibits dealing with the beneficial interests in the property.
• The Deed of Assignment, once completed, is effective between the Assignor and the Assignee, it is not effective against the legal owners unless they are given written notice.
• This Deed of Assignment assumes that the property in question is a residential freehold registered or unregistered property in England or Wales.
• An assignment must be expressed to take effect immediately. This Deed of Assignment takes effect immediately on the date of the deed.

 This Deed of Assignment to transfer the beneficial interest in property is fully comprehensive, it is in Microsoft Word format, written in plain English, easy to use and edit.