Transfer of title deeds to a sibling. Help!

the_stoat

This is a bit of an odd situation I'm in and I've looked on the previous postings by they all relate to someone who's died or couples who are either removing a partner from the deeds (very sad) or adding someone (very romantic).

I own a house with my sister (in that we paid half each) but it is registered in my name. I'd imagine it is worth about £90,0000-£100,000. My sister has another property which is under her name, which belongs entirely to her.

If I wanted to transfer the name on the title deeds to her, what would I need to do? How much would it cost? and what might be the implications in terms of capital gains tax etc...

Any help at all would be gratefully received as it seems unclear what I should do.

Many thanks,

the stoat

Fire_Fox

You need to ask a conveyancing solicitor for a quote! What capital gains tax you pay is an unanswerable question as you have given us no information to work with - loads of information on the inland revenue website, or they are very helpful when contacted by telephone. Note that if you are doing this in order to 'get rid' of your assets this may be viewed as 'deprivation of capital' depending on the circumstances, sorry but I cannot think why you would give half a house to someone who already has one and a half houses.

CLAPTON

tell us alittle about the situation

do you live in the house
did you ever live there
does she live there
did she ever live there

is there a mortgage on the property?

how much was the house when you bought it

McKneff

Why are you transferring your asset to her, I'm not being nosy
but if you ever want to claim any sort of state benefit it could come
back and bite you both in the bum, ie deprivation of capital.

G_M

Your sister would have a home she lives in, exempt from CGT, and a 2nd home on which she would have to pay CGT.

Transferring to her name, though, is pretty straight forward. Speak to the Land Registry, get the forms, do it yourself.

As to why you're doing this, I echo the questions/concerns/warnings of others.

the_stoat

Thanks for all the responses so far, sorry I haven't been able to reply sooner virgin digital have let me down again!

So, the reason I would want to move the property to my sisters name is that I live in London and trying to get on the housing ladder there. This is proving very difficult as I work in a not particularly well paid job in the public sector. My only option is through a shared ownership scheme, however the snag is that if my name is on the title deeds of another property I am ineligible for the scheme.

My sister has lived in property up until about a year ago, I have never lived in the property. The property has been rented out for the last year. There is no mortgage on the property, it was bought for £70,000 and we spent about £10,000 renovating it. I should say, we have tried to sell it but have never been able to shift it, even when it was on for 18 months.

Not sure if that makes it any clearer. Any further advice suggestions would be really helpful.

McKneff

So is your plan to for your sister to actually buy your half.

the_stoat

McKneff wrote: »

So is your plan to for your sister to actually buy your half.

No.
I wish she could but she doesn't have the finances.

silvercar

It would cost a couple of hundred pounds for a solicitor to do the work.

You would have a capital gains tax liability, depending on the gain in value since you bought it.

McKneff

the_stoat wrote: »

No.
I wish she could but she doesn't have the finances.

so if you are being so generous why doesnt she do the same, give her half of the house to you so you can sell it and get on the property ladder.

That way you would have a house each instead of her having 2 and you having none.

00ec25

becuase you have never lived there, and assuming that it has gained in value above the 70,000 you paid for it, when you transfer it to your sister this is classed as a "connected person"
Therefore CGT liability will become immediately due based on the full market value of the house at date of transfer - irrespective of the fact you are giving it away to her for nothing.
You will therefore have to pay CGT now - if any is due.