Removing someone from deeds

jesster_2

Hi

I wondered if anyone can advise on what's the best thing to do.

My sister and I bought a house about 5 years ago. Joint deeds, joint mortgage. A couple of years ago we wanted to go our separate ways, and I unofficially 'bought her out'. The mortgage was up for renewal anyway so we had her name removed and the new mortgage issued as mine only.

It seemed to slip our minds that we'd need to get her name off the deeds too!

So now we need to get her name off the deeds - but we're a bit worried she might get stung for some kind of capital gains? We're not selling the house, and given the market it's probably not worth any more than when we bought it anyway, but what's best for us to do given that it hasn't been her residence, and for the past year she's owned another flat elsewhere?

And who do I need, a lawyer or a tax accountant, or both? (she says, watching the pounds fly out of her purse!)

Any guidance gratefully received! Thank you!

Entertainer

Don't quote me on this but I think you need TR1 transfer form, AP1 Land Registry form to notify them and quite possibly ID1 LR i.d form. Phone the Land Registry.

Your sister would be liable for half of any gain since you bought and would be able to use her annual allowance of £10,100. You would obtain a market valuation to determine its value. Or she could claim a loss which can be carried forward to future years.

You wouldn't need a tax accountant for this. In fact you wouldn't need a solicitor either.

duncan303

Entertainer wrote: »

Don't quote me on this but I think you need TR1 transfer form, AP1 Land Registry form to notify them and quite possibly ID1 LR i.d form. Phone the Land Registry.

Your sister would be liable for half of any gain since you bought and would be able to use her annual allowance of £10,100. You would obtain a market valuation to determine its value. Or she could claim a loss which can be carried forward to future years.

You wouldn't need a tax accountant for this. In fact you wouldn't need a solicitor either.

Wow.... what a cracking answer..absolutely on the nail..........:T:T


..

zzzLazyDaisy

Has your sister ever lived in the place / had it as her principal residence as this could make a difference

jesster_2

wow, that's uber helpful, thank you!

She didn't technically live in the house, though she didn't have another mortgage at that time...

DVardysShadow

jesster wrote: »

wow, that's uber helpful, thank you!

She didn't technically live in the house, though she didn't have another mortgage at that time...

But did she own another house?

jesster_2

NOt at that time. We bought this house together, then went our separate ways so she could buy a house elsewhere with her boyfriend. So she does own one now, but didn't at any point own two. (Although obviously the deeds would suggest she did because we didn't get her name off...)

zzzLazyDaisy

This might sound like a strange question, but are you sure her name hasn't been removed from the deeds? Have you actually checked? You can get a copy from the land registry for about £3

The reason I ask is that normally a lender won't allow one joint owner to be released from the mortgage, simply because if the borrower defaults they can't repossess if the other owner isn't on the mortgage. So normally it is a strict rule - joint owners, joint mortgage.

So if you used to have a joint mortgage, but re-mortgaged into your sole name, the likelyhood is that the transfer into your sole name was done when the Lender registered their interest at the land registry. So it is worth checking.

Fire_Fox

If your sister has claimed any means-tested benefits in the intervening period she may have inadvertently committed fraud if she said she had no other assets ...

jesster_2

zzzLazyDaisy wrote: »

This might sound like a strange question, but are you sure her name hasn't been removed from the deeds? Have you actually checked? You can get a copy from the land registry for about £3

The reason I ask is that normally a lender won't allow one joint owner to be released from the mortgage, simply because if the borrower defaults they can't repossess if the other owner isn't on the mortgage. So normally it is a strict rule - joint owners, joint mortgage.

So if you used to have a joint mortgage, but re-mortgaged into your sole name, the likelyhood is that the transfer into your sole name was done when the Lender registered their interest at the land registry. So it is worth checking.

Do you know what, that does make perfect sense. I was wondering how that would have worked with the mortgage company, and I know it sounds really thick not to be across this but it was a slightly, er, stressful time and I don't think I was properly focused and I have a bit of a blind spot about it. I just went through all the paperwork I have and we were certainly billed for a transfer of equity by the solicitor, so that presumably means it should have been done. I don't remember getting any confirmation or new paperwork for it, which made me worry, though by what you say I'd expect the mortgage co would have insisted on seeing that before approving the loan. I'll check with the Land Registry - thank you for being patient and helpful with the advice, especially if it turns out I've just been a total numpty.

zzzLazyDaisy

If you have had a transfer of equity confirmed by the solicitor, then her name WILL have been taken off the deeds - and if it hasn't been, it would be the solicitor at fault.

You can always phone the solicitor and I'm sure they'll put your mind at rest, but as I say, for about £3 you can do it online yourself at the land registry.

Good Luck!

(OH and you are not a numpty - any question is easy if you know the answer!!!)