property transfer

[penuk]

I own a house (no mortgage) and want to give it to my daughter who has just turned 18 - can I do this without using a solicitor?

[akaceefax]

I am not a lawyer but the transfere of property must go through a solicitor as in that field of law everything must be done on paper (verbal agreements are not up heald) and there are things like stamp duty to consider. It is also not possible to 'give' property away as a contract must contain an exchange of worth. This means that your daughter must buy it from you however you could sell her the house for �1. The easiest and probably the cheapest way to transfere the deeds to you daughter is to go through a solicitor who will be able to find the cheapest legal method of transfer as the system is pretty complex.

[Maude]

Tripe. It is a fairly simple matter, you can do it yourself and you do not in the least bit require a solicitor.

[penuk]

Maude - can you tell me what I do then please?

[Maude]

Yes. However, before we start are you proposing to continue living there until you no longer can and if so have you thought about co-owning the property with your daughter in joint tenancy or tenancy in common? (if this is not understood please say and I will post a basic description of each). Also, do you possess the deeds/land certificate and do you know if the property is registered?

[AllYourBase]

Surely some sort of tax would have to be paid? If not please advise ASAP, as I will go and knock on my Dad's door in the morning to suggest we do this straight away in order to avoid nasty inhertiance tax/care home fees later on!!!

[penuk]

I am currently renting this property out - myself and my daughter live in a rented property at the moment - I may decide to move into the property but I'm not sure at the moment. I do posess the deeds and the property is registered.

[Maude]

Go to www.landreg.gov.uk and click Publications/Forms at the top. Click Forms from the drop-down menu and print off AP 1 and TR 1 (or phone your local LR office and request the forms). The phone [phone] Option 1 and request Form SDLT 60. Forms AP 1 and SDLT 60 are straightforward. In TR 1 you are the Transferor, daughter Transferee: against 11 put "not applicable: sign the last box with words as follows "Signed as a deed by - your full name - in the presence of - witness full name (witness must be somebody other than yourselves). Sign, put full name in Block Capitals and then Transferor. Under the witnesss signature write Signature of Witness and then write witness full name in Block Capitals and witness address. Return to the Fees calculator on the LR website and enter value of your property to obtain fee (probably �50 - �100)(or phone local LR office). There is no tax and nothing else to pay. Pin AP 1, TR 1, SDLT 60 your existing deeds or land certificate and the fees cheque together and send to your District Land Registry Office. In about 5 weeks a ne Land Certificate will appear in the changed name. Simon C if there is a mortgage please say, as the procedure is slightly different.

[Maude]

Erratum: 4th line should commence "Then". 12th line should commence "Daughter must sign in exactly the same way except as "Transferee". 18th line "ne" should be "new".

[akaceefax]

This is well and good if your daughter is your common law partner in which case things like stamp duty and capital gains tax don't come into play. at the very least go to ur citizens advice bureau for advice. there are a number of loop holes and other ways in which you can pass on property with out the expense of such taxes. My father has recently handed my a couple of properties which, through simple channels would have cost me a lot of money. We spoke to a solicitor who arranged the transfere for a total cost of �5000 which was a fraction of what we would have paid other wise. The whole system is very dependant on you legal situation.

[Maude]

More tripe.

[Maude]

To add a note on tax. Under current rules, in the matter of Inheritance Tax on a gifted property valued below �263000 the tax is nil. If valued above �263000 and the donor dies not more than 3 years after gift 100% of the tax due is payable, 3-4 80%, 4-5 60%, 5-6 40%, 6-7 20% and after 7 years nil. That is why I mentioned co-ownership and joint tenancy. When 2 people co-own a property in joint tenancy on the first death the property is simply and automatically transferred to the survivor without wills, probate and completely free of Inheritance Tax. Only at the death of the survivor does Inheritance Tax become due (and it is so unpopular that it might be abolished by then!).

[norfolk boy]

I believe that when a property is gifted over if the person who gifted goes into care within 7 years the matter can be looked into to see if it was gifted to avoid any nursing care fees! (Mrs Norfolk boy)

[chrislangham]

You can, but as you are asking better visit a land law specialist for a deed of tranfer, watch out for inheritance tax, and you must do it all in writing (Law of Property Act 1925) Transfer must be registered with the Land Registry also