House changing name of ownership?

CLAPTON

and to add
you probably won't count as a first time buyer when you come to buy your own 'first' home for either stamp duty purposes or maybe mortgage purposes

HappyMJ

myright wrote: »

Secondly, my personal plan is to move out in 4-5 years when I'm married and made enough savings for a deposit. Would this have a negative affect on me? (this plan is a mighty 'if')

Yes you would not get a stamp duty exemption on your first home purchase as you will already own a home. This plan could cost you from £1250 and up to £2500 in stamp duty.

Too many pitfalls as explained already in doing it. Leave it in your mums name. Get her to create a will if she wishes to leave you the house.

myright

the only problem is that She's getting married and she just want to take precausions. ( its something she wants to do)

Also my credit history isn't too great atm as i have 1 satisfied CCJ, would it not help me get a mortgage in the future if i can get it agains this house i'm currently living in?

kingstreet

Having a CCJ is the same regardless of what you're living in. A big deposit or equivalent equity in a property would help, but that would mean you'd be selling and potentially leaving your sister and your mother in the lurch.

Can I ask why your mother is giving the property to you? There must be some plan behind the gesture, surely?

I still can't get my head round what she's trying to achieve. She wants to take precautions against what?

Annisele

kingstreet wrote: »

I still can't get my head round what she's trying to achieve. She wants to take precautions against what?

I'm also flummoxed by this plan. Does she mean she wants to take precautions against her new husband having a claim on the house? If that's the case she needs legal advice. I'm not convinced that putting the house in your name would necessarily defeat a future claim by her new husband - and in any case giving her assets away now doesn't seem like a good way to protect herself against the risk that she'll lose those same assets in future!

myright

Exactly, she doesnt want anybody to take advantage on the situation. i.e house.

Also how can anybody claim against a house that they dont own i.e husband claim against a house that is not owned by the wife??

Mojisola

I would have thought a will that left the house to her daughters but gave the husband the right to live in the house for the duration of his life would serve the purpose. If the house is in a trust, the daughters won't have the problems with benefits, CGT, etc, as talked about above.

If she's worried about getting divorced and him putting in a claim on the house, perhaps they shouldn't get married.

myright

I knwo what you mean, but her bf is adament that he wants to get married. She loves him but she doesnt want to risk anything.

what does it mean when the house is in a trust?

CLAPTON

myright wrote: »

the only problem is that She's getting married and she just want to take precausions. ( its something she wants to do)

Also my credit history isn't too great atm as i have 1 satisfied CCJ, would it not help me get a mortgage in the future if i can get it agains this house i'm currently living in?

so your mother wants to protect the ownership of the house from her spouse

but to do this she has to expose the ownership of the hosue to her childrens' spouses whom she doesn't even know yet.

complete and absolute madness on her part and maybe a little self interest on the part of her children?


no surely not?

Annisele

myright wrote: »

Also how can anybody claim against a house that they dont own i.e husband claim against a house that is not owned by the wife??

I'm not a lawyer, so I might be utterly wrong on this...but I think that sometimes the law will look at the substance of a transaction rather than the form. So, if your mother "gives" her house to you, but continues to live in the house, continues to pay for its bills and maintenance, and there is no expectation whatsoever that it would be OK for you to decide to sell the house without your mother's agreement - then the substance of the transaction would be that there was really no transaction at all. Your mother might effectively remain the (beneficial) owner of the property, and then she would have an asset that her husband could go after in divorce proceedings.

I'm not trying to give you any kind of rundown on the law (because I don't understand it myself). I'm just trying to persuade you that if your mother is determined to transfer her house to you/your sister, then she needs proper legal advice. Giving away your most valuable asset isn't something you should do without serious thought, and proper advice as to whether your gift will have the effect you think it has.