Making partnet joint tenant on my property.

Hayelyhayley

Hi, i own my property outright with no mortgage and have used it as my main residence for as long as i have owned it.

How do i go about making my partner joint tenant?

I beleive i can simply use a deed of trnafer to give half to him. There would be no CGt to pay as it has been my main residence. Is this right?

If so, would the whole property pass to each of us via survivorship if the other died?

Thanks

holly_hobby

Is the property also going to be your parents main residence ?

Holly

McKneff

holly_hobby wrote: »

Is the property also going to be your parents main residence ?

Holly

Parents?

Where did parents come into it..................

zzzLazyDaisy

Hayelyhayley wrote: »

Hi, i own my property outright with no mortgage and have used it as my main residence for as long as i have owned it.

How do i go about making my partner joint tenant?

I beleive i can simply use a deed of trnafer to give half to him. There would be no CGt to pay as it has been my main residence. Is this right?

If so, would the whole property pass to each of us via survivorship if the other died?

Thanks

Are you married to your partner? If so there is no tax payable on the transfer, and you can get a form from the land registry to do the transfer (but see comments below). If you are not married then there may be stamp duty payable on the half that you transfer to your partner which will be assessed at market rate.

Whether the property would pass automatically depends on how you deal with the transfer. If you both hold the property as tenants in common, then yes, the house would pass automatically to the survivor on the death of the first partner. If you want to be able to pass your share of the house to someone else on your death, then you'd have to hold the house as tenants in common in whatever shares you agree on.

What you must be aware of, though, is if the relationship fails and he is a joint owner, he automatically gets half the value of the property, regardless of the fact that he may have made no financial investment. If you are married, then the courts have the power to adjust the shares, which they may or may not exercise, but the courts have no similar powers where unmarried partners are concerned.

There may also me IHT issues if you are not married and you die within 7 years of the transfer.

If your main concern is to protect him if you should die first, then the easiest way to deal with that is to make a will. This would ensure he is not left homeless, while at the same time also ensuring that your interests in the property protected during your lifetime.

I must also say that this is not something that you should proceed with based on information obtained on an internet forum. This is a HUGE step, and I strongly suggest that you seek legal advice before taking it.

Good luck

Daisy

EDIT - just checked your other posts and realised that this is the third thread about what to do with the house and that you have also spoken to a solicitor about the issues. As you have children, the best thing you could do from a financial point of view is to marry, since this gives you protections, and also IHT advantages, not available to unmarried couples. But since you have clearly stated that is not an option, I suggest that you seek specialist advice as suggested on your other thread.

CLAPTON

as joint tenants you both own the house jointly and severally so he won't own half the property , you both own it totally.... like a joint savings a/c you don't own half each you both own all of it.

so on the first death then the survivor becomes sole owner of the property without probate
however IHT may be payable as you aren't married (presumably)

and there is no cgt on the change

and no stamp duty as there is presumably no payment or mortgage involved

CLAPTON

zzzLazyDaisy wrote: »

Are you married to your partner? If so there is no tax payable on the transfer, and you can get a form from the land registry to do the transfer (but see comments below). If you are not married then there may be stamp duty payable on the half that you transfer to your partner which will be assessed at market rate.

Whether the property would pass automatically depends on how you deal with the transfer. If you both hold the property as tenants in common, then yes, the house would pass automatically to the survivor on the death of the first partner. If you want to be able to pass your share of the house to someone else on your death, then you'd have to hold the house as tenants in common in whatever shares you agree on.

What you must be aware of, though, is if the relationship fails and he is a joint owner, he automatically gets half the value of the property, regardless of the fact that he may have made no financial investment. If you are married, then the courts have the power to adjust the shares, which they may or may not exercise, but the courts have no similar powers where unmarried partners are concerned.

If your main concern is to protect him if you should die first, then the easiest way to deal with that is to make a will. This would ensure he is not left homeless, while at the same time also ensuring that your interests in the property protected during your lifetime.

I must also say that this is not something that you should proceed with based on information obtained on an internet forum. This is a HUGE step, and I strongly suggest that you seek legal advice before taking it.

Good luck

Daisy

I don't think this is so

1. there is no stamp duty if there is no consideration i.e. no payment or mortgage ; it doesn't matter if they are married or not

2. ownership only 'transfers' on death if they hold the property as 'joint tenants' and it doesn't automatically transfer if held as 'tenants in common'... I think you meant to say that but didn't

hcb42

McKneff wrote: »

Parents?

Where did parents come into it..................

I expect she meant Partner's

zzzLazyDaisy

CLAPTON wrote: »

I don't think this is so

1. there is no stamp duty if there is no consideration i.e. no payment or mortgage ; it doesn't matter if they are married or not

Okay, it was my understanding that if the people are not married, then stamp duty is assessed as if it were a transfer at market value. But I am happy to be corrected.

2. ownership only 'transfers' on death if they hold the property as 'joint tenants' and it doesn't automatically transfer if held as 'tenants in common'... I think you meant to say that but didn't

That is exactly what I meant to say. Apologies if I wasn't clear. (Note to self, do not post on MSE after partaking!:o)

holly_hobby

McKneff wrote: »

Parents?

Where did parents come into it..................

Ooops ... naturally this was a deliberate mistake...and not a mis-read on my part!!!

Holly

Hayelyhayley

No we're not married, so what would the IHT situation be?

holly_hobby

Normal IHT liability to the surviving parnter (equal to their share of the property i.e 50% in joint tenant situation) - suggest effecting a LTA (in trust) to take care or offset any future IHT liability. (i.e value of estate to exceed nil rate IHT threshold)

If you are set up as tenants in common (with % apportioned as you wish) you may write a will to direct where your share goes and/or put your share in trust. (again some IHT planning may be reqd if the value of the decd estate is likely to exceed nil band thresholds)

Its a complex area - and I would suggest it is always wise to personally seek qualified advice and opinion before you take any action in areas such as IHT mitigation and taxes.

Hope this helps

Holly