House Ownership

zzzLazyDaisy

Mojisola wrote: »

luiccia right, you don't have to agree to it - all your mother has to do is notify you that she wants the type of ownership to change. .

That's right. All your mother needs to do is to serve a Notice of Severance on you, and have it registered at the land registry. This severs the joint tenancy and it becomes a tenancy in common, in 50/50 shares, so you will own half each and can leave your half in your will to whoever you please.

It is a risky move for your mother because if (heaven forbid) you die first, you could leave your share to whoever you please, which could mean the house would have to be sold, unless your mum could afford to raise the money to buy that share.

boybig

If Mum leaves her share to one/two grandsons will they be liable for CGT (or any tax) on her death?

Will I be liable for any tax on her death (I have owned half share for approx 18 years)?

zzzLazyDaisy

You won't be liable to tax on her death. That is the case whether the house remains as joint tenants (in which case the whole house will come to you automatically, since you both already own all the house) or whether it is as tenants in common (because you already own that half anyway).

Your sons will not pay CGT on your mother's death. They may pay IHT if the value of the estate (that is all your mum's possessions and property) is more than the nil rate band (£325,000 in 2009, possibly more if she is a widow).

If the house is held as tenants in common, and your mother's half is left to your sons, they will inherit that half, so you will then own the house as tenants in common with your sons.

When the house eventually comes to be sold, CGT will apply. The amount will depend on how much the person's share has increased in value since they first owned it, and what the value is once the nil rate band is deducted. So you are more likely to pay CGT than your sons, at least in the early years, as you have a bigger share, and have owned it for longer.

Hope this helps

Johnhowell

zzzLazyDaisy wrote: »

Since joint tenants is by far the most usual way to buy a house in joint names (the other way being tenants in common) the first and most important thing is to establish how the house is registered. A copy of the title certificate can be obtained from the land registry online for about £3.

Sadly, the HMLR title will not indicate the type of ownership, just list the owners. I know because I am tenant in common with my partner in a 30/70 split. The Title downloaded for the property does not indicate this. It is only on the Transfer of Part of Title (TP1) form does the split be indicated as well as the type of "jointship"
John

Mojisola

As the house has been in the family for some time, it might not be on the Land Registry. You will have to send the deeds to the Land Registry if you want to get it listed.

zzzLazyDaisy

Mojisola wrote: »

As the house has been in the family for some time, it might not be on the Land Registry. You will have to send the deeds to the Land Registry if you want to get it listed.

Compulsory registration was introduced gradually in different areas during the 1980's, and in 1990 became compulsory for the whole of England and Wales whenever a property changed hands.

OP says she has owned the house for about 18 years, so it should be registered, but I agree, it is worth checking. Personally where there is a potential falling out, I'd have go for voluntary registration anyway.

zzzLazyDaisy

Johnhowell wrote: »

Sadly, the HMLR title will not indicate the type of ownership, just list the owners. I know because I am tenant in common with my partner in a 30/70 split. The Title downloaded for the property does not indicate this. It is only on the Transfer of Part of Title (TP1) form does the split be indicated as well as the type of "jointship"
John

Thanks for pointing this out - I've only ever dealt with the paper version as part of the registration process, so I didn't realise this. You learn something new every day