Changing name/ deeds of the house?

myright

Hi guys,

I just want to know how much does it cost on average to change the name of the house? i.e from mother to kids? (there's no mortgage involved, it's all paid off).


What's the procedure?

thanks

Trying_to_be_good

I only have experience of this on a divorce, transferring equity from one partner's half into the other partner's name so they owned the whole house, and it was low hundreds.

Then there's stamp duty land tax on the transaction, as if the house were sold, and potential inheritance tax though the transaction would be fully exempt after 7 years if Mum is not living in the house and has retained no other interest.

Should Mum need any residential care, the value of the house may be taken into account (as intentionally depriving herself of the asset) in calculating any benefits she may receive.

Lots to take into account, and you may well already have done so and just need the solicitor to carry out the sale/purchase with no proceeds changing hands.

Annisele

If there's no mortgage, then you don't need a solicitor and you can do it pretty cheaply. I agree that a solicitor would probably do it for low hundreds.

However, the whole area is a tax and benefit minefield. You don't want to save a few hundred on solicitors fees now, only to lose out by tens of thousands in tax or lost benefits in future. So, as the above poster says, if you haven't already sought legal advice do so.

myright

the thing is mum will always stay in the house with the kids, she's not moving out etc.

What kind of benefits would the kids/ mother lose out on. and Is there a deffinated tax involved if the house is sent as gift to the kids?

Senior_Paper_Monitor

The paperwork transaction is simple and cheap.

The potential complications of such a transaction are not - TAKE PROFESSIONAL ADVICE !!

Annisele

If the mother isn't moving out, what is the purpose of the gift?

bluecelticgirl

looks like trying to avoid care home fees - if not I apologise - but can't see any other reason - oh dear a minefield -I have very mixed feelings about this. I have seen someone sign over their house to a grandchild and then she developed paranoina and should not have been staying in her home but because someone else owned it she could not leave and lived her life out in a really bad way

cte1111

If the Mum stays in the house and does not pay market rent, then it will still count as part of her estate for inheritance tax purposes. Inheritance tax only applies for people who leave a total estate of over about £325,000 so may not be relevant anyhow.

If the transfer is being done to try and avoid paying future care home fees, then it would be seen as deprivation of capital and may be still counted as the Mother's asset when making a financial assessment, should the Mother need residential care in the future.

beecher2

https://forums.moneysavingexpert.com/discussion/3212798
gives a bit more background - a lot of useful comments on that thread which the OP seems to have dismissed.

SailorSam

My house is in joint names for my Sister and myself, i wanted it changed to just me and the solicitor has said it will cost approx £380. We both had to call in with our passports and utility bills.
I spoke to the Land registry and they told me if we could get to their offices, again bringing proof of ID we could complete all the forms ourselves there and they'd check them. That would have only cost the Registry charges.

Annisele

Ah, thanks beecher2. In that case, I haven't changed my mind - on the face of it it's a dozy idea, but if your mother is certain she wants to go ahead then she needs paid for legal advice.