Last Will and Testaments... or not....

Better_Off_1983

Hi

My partner's mother wants to sign her house over to him eventually rather than leaving it in a will. Will it be an easy transaction? Will he have to take out the remainder of the mortgage in his own name or will the bank just change the names on the deeds and mortgage agreement?

The reason why I ask is because he does not have a very good credit rating... I have a good rating, however, I have quite a few thousand pounds saved up.

Thanks

CLAPTON

why does she want to do this?
where will she live ?

how old is she?

if she has a mortgage then no she can't just sign the house over;
the deeds and the mortgage need to agree (i.e. same name(s) on both)

Better_Off_1983

I am assuming, she will still live there, but sign the house over to him. She is 54 but she is saying things that are quite worrying to my partner, like she knows her time is up.

getmore4less

Sounds like they need to talk.

Do they live near each other?
Any other siblings grandparents.
Does she have a partner?

has she had a recent berievment?


Some peope just can't gettheir heads round wills.

it is rare that signing over houses is a good idea in the long run there are a lo of issues that need thinking htrough.

opinions4u

Capital Gains Tax and Deprivation of Assets would be a good Googling suggestion.

A will is usually a cheaper way of doing this.

ScotlandM

Is it possible for the mother to gift part of her equity each year?

We don't know the figures in this case but say the house was worth 150k and the mortgage was 50k. Could the mother gift 6k this year then 3k each year inheritance tax free?
Or can you not gift part equity?
Or can equity be gifted on the condition that the mortgage is serviced first in the event of a death?

CLAPTON

really need full information
superficially and without the full facts it seems an absolutely daft thing to do and full of tax implications


what is the value of her estate?
how much is the house worth?
is she married?
is she really terminally ill?
how much is the mortgage?
whose names are on the deeds and on the mortgage

Better_Off_1983

The house was brought 30 years ago, there is about 5 years left on the mortgage but there will be a £13k shortfall. She has a partner of 30 odd years but she knows my partner, her only son will be heir. The house is probably worth £100K

The mortgage is £100 per month. It is just her name on the land registry/deeds and mortgage.

She wont say if she is ill, but there was a recent bereavement- a family friend passed away suddenly- she was a similar age.

opinions4u

ScotlandM wrote: »

Is it possible for the mother to gift part of her equity each year?

We don't know the figures in this case but say the house was worth 150k and the mortgage was 50k. Could the mother gift 6k this year then 3k each year inheritance tax free?
Or can you not gift part equity?
Or can equity be gifted on the condition that the mortgage is serviced first in the event of a death?

It can be done, but you'd need the lender's permission, for which they'd charge. You'd then need a solicitor to handle the transaction. Each time.

So you'd rack up fees and still not solve the CGT and DOA issues.

DVardysShadow

Better_Off_1983 wrote: »

..... The reason why I ask is because he does not have a very good credit rating... I

Yet another good reason to dissuade her from transferring the property or any equity in it. If your partner's credit issues turn bad, the creditors could come after the house his mother lives in.

And in the same vein, I wonder whether she is contemplating doing this because she has credit issues of her own and fears that the house may be taken for her debts?

Mojisola

Better_Off_1983 wrote: »

The house was brought 30 years ago, there is about 5 years left on the mortgage but there will be a £13k shortfall.

What is she planning to do about this?