Changing name in title deeds?

snodgrass

I hope this is the right forum to post this question,sorry if it is not.My mother is 65,and since my father passed away 3 years ago i (her daughter)moved back in to look after her etc.She is still in good health,apart from the usual ailments.
My mother has made it be known that she would like to either change the house deeds to joint with me included on them,or change the deeds to me in sole name.Would there be any implications in doing this,or is it as simple as putting my name on the deeds,no questions asked.The house is valued at £110.000.Would there be tax implications along the way.Even if she sold the house to me for a nominal fee,say £5.000,is this deemed legal and legitimate.Any help please.

dillanddodge

I did something similar recently. I adde dmy huubys name to a buy to let mortgage that was in my own name. The mortgage lender charged a fee (around £100 I think) and there were also legal costs to have the property registered with the Land registry. Only tax implications I can think of is capital gains tax when you come to sell. You will be taxed on the difference between what the property is worth now and the selling price @ 18% (Ithink it 18% - not entirely sure) but you will have a tax free allowance of £9600.

sdooley

If you continue to live with her with this as your main residence, capital gains tax won't be an issue.

Is she in a condition where she may need to go into a care home imminently? If so, this may not avoid the house being sold to pay fees, if you were to move out. But having your name on the deeds may protect you so long as you live there.

Is she continuing to live in the home after she gives it to you?
If so, the gift may not be effective for inheritance tax purposes (the house will still be part of her estate). But she has to have over £300,000 (possibly twice that) before there is any tax anyway. The gift won't put you in a worse situation for IHT, it might make it better.

And a practical point - speak to any siblings about this before doing it!

snodgrass

My mother has informed my elder married brother about this,and he does not mind.He knows i would not do anything stupid,such as sell the house from under my mothers feet or anything,he trusts me,and knows i am looking after my mother and her interests.He knows it is not just so i can get my hands on the house,but thinking of the future.God forbid my mother will not need a care home,but we will be damned if the government are having her house to pay for it,they take enough off everybody now with extortionate taxes,she is a pensioner and i am only on minimum wage.

One more question as daft as it seems,could she sell the house to me for some stupid figure,like say £5-10.000.Would it be allowed,legal etc.

angelavdavis

Can't answer your question about selling for a nominal figure - someone will come along who can help, I am sure.

Your mother can add you as joint owner easily.

As you have made no mention of a mortgage, I will assume there is none.

I am currently doing this myself - as my husband has recently sold his bachelor pad and this has allowed us to settle my mortgage in full - I now need to get his name on the deeds to the property becomes 50/50 ownership.

We have provided our solicitor with the land registry entries and he will then organise it. He said it was a simple activity and will only cost about £50 in fees.

monkeyspanner

As sdooley pointed out. If your Mum continues to live in the house then some of the benefits of the gift are negated. The gift will be viewed as a gift with reservation because your Mum still benefits from the use of the house. The value of the house therefore could form part of your Mum's estate in the event of her death. If her savings plus the value of the house were over the IHT threshold then IHT tax would be payable. If you purchased the house for say £5000 then you could argue that a small percentage of the value of the house should not be included in the IHT calculation. It may be possible to get round the gift with reservation if your Mum pays a commercial rent to you but you would need to seek tax advice.

If there is any chance your Mum will need a care home placement in the near future the council could view the transfer as a deliberate deprivation of assets and try to recover the value of the gift to pay for the care home fees.

If you are considering a joint ownership of the house you need to consult a solicitor regarding the relative benefits of joint ownership versus tenants in common. I believe with TIC it makes the other owner slightly more secure if one owner has to go into care but I cannot remember the details.

If your Mum is seriously considering this move you would need to make provision in your will for your mother or she will be at the mercy of the benficiaries of your will in the event you die before her. Unlikely I know but not impossible.

Finally if certain posters pick up on your comments about preventing the government from getting hold of your Mum's assets to pay for care be prepared for some unpleasant posts.

snodgrass

Thanks for your comments,and do you know what Monkeyspanner,i could not care less about other peoples comments,blow them.This is our affair,we come from a not very well off family,so why should the council have benefit of her house,when or if care homes beckon.I know everybody else here works hard for what they have,and so too did my parents,45 years each.Why should others benefit when she passes away,her family should,and she has always said that.

EdInvestor

monkeyspanner wrote: »

If there is any chance your Mum will need a care home placement in the near future the council could view the transfer as a deliberate deprivation of assets and try to recover the value of the gift to pay for the care home fees.

[/quote]

It would be wise to make sure you own the property as "tenants in common", half each.That way only Mother's half could be taken to pay for care, and since you can't sell half a house, generally they will not pursue the matter.

monkeyspanner

snodgrass wrote: »

Thanks for your comments,and do you know what Monkeyspanner,i could not care less about other peoples comments,blow them.This is our affair,we come from a not very well off family,so why should the council have benefit of her house,when or if care homes beckon.I know everybody else here works hard for what they have,and so too did my parents,45 years each.Why should others benefit when she passes away,her family should,and she has always said that.

Totally agree with you. We all pay taxes. If some people choose to save their income or use it to pay for their home it doesn't seem reasonable that they then should be at a disadvantage when it comes to care home funding.

margaretclare

angelavdavis wrote: »

Can't answer your question about selling for a nominal figure - someone will come along who can help, I am sure.

Your mother can add you as joint owner easily.

As you have made no mention of a mortgage, I will assume there is none.

I am currently doing this myself - as my husband has recently sold his bachelor pad and this has allowed us to settle my mortgage in full - I now need to get his name on the deeds to the property becomes 50/50 ownership.

We have provided our solicitor with the land registry entries and he will then organise it. He said it was a simple activity and will only cost about £50 in fees.

I think that's a bit different from what is being asked about.

Following our marriage in 2002, we put the title to this property - which had been in my name up to then - into joint names. We did equity release - 'lifetime mortgage' - at the same time, to pay off the mortgage that way. Otherwise we'd have been paying it for another 15 years, until we were 83. Just in time to die and leave it to someone else.

'Moving in with mum to look after her', and she's 65! What 'looking after' does she need?

Not sure what the 'usual ailments' are, but you said she was in good health?

Thinking back to myself at age 65, I was still working then and I got married when I was 66.

snodgrass

My mother owns the house,outright,she has for 20 odd years,no mortgage involved.