Possible to 'transfer' ownership of a property quickly/easily?

macaulays

Morning all, quick summary - a few years ago my parents did an equity release on their house to lend me the funds to buy a very cheap flat without having to try and get a mortgage in my name immediately post-uni. I pay the monthly repayment for the loan etc so the borrowing is in their name, secured on their property and, on paper, I own the little flat outright. Myself and other half moved down to London recently and want to buy here using the HtB Eq Loan scheme for new builds. As I own this place up north however, we need to wait until it is sold to be able to do anything. The area it is in is nice but *very slow* market which means it could be quite some time before a sale is secured. As we are keen to try and move on something here quite quickly (developers seem to add another 10k onto each weeks new releases!) I am wondering if there is anything I can do to expedite - my dad suggested I 'sell' or transfer the existing flat to them so that I cam buy more quickly and they hold it till it sells. Is this possible? Can one 'transfer' a property or do you still need to go through the same processes and solicitor fees etc as if it was a normal market sale?

Any thoughts most welcome!

Sandy

(Ps - existing property is in Scotland if relevant)

macaulays

Any thoughts at all?

Thanks!

[Deleted User]

If you own the flat outright then you can do it just using land registry forms -- although personally I would get a solicitor involved for the sake of knowing it's done right.

Specific to your situation, owning a property outright is good for your mortgage prospects -- assuming you "forget" to declare that you have an informal loan with your family for the value of the property. Have you spoken to a mortgage broker about your situation? They'd be able to advise.

xylophone

Your parents took equity release and there is a loan standing in their name and secured on their home.

They made the money available to you so that you could buy a flat.

How was the above arrangement recorded? A loan from your parents? A gift from your parents?

You have been repaying your parents' loan. Is this a gift?

You now propose transferring ownership to your parents. A gift? The repayment of a loan?

In view of any possible CGT/IHT/ even income tax considerations, in your position I'd consult a solicitor/accountant before going any further.

G_M

xylophone wrote: »

........

In view of any possible CGT/IHT/ even income tax considerations, in your position I'd consult a solicitor/accountant before going any further.

???

CGT?
* OP owns the property he lives in. No CGT liability.
* parents own he property they live in. No CGT liability.
* if parents now take ownership of the OP' property ( and presumably don't live in it), then yes, there is a potential for CGT. But only if it increases in vanlue between the date they take ownership and the date they sell, AND that increase exceeds their annual CGT allowance.

Inheritance Tax?
* Since (I assume) parents will be buying the OP's property (so he has the cash to buy down south) there is no gift. So irrespective of parents death, no IT liability
* The money to buy OP's current property was a loan, not a gift, so again, no IT liability (though if parents died, OP would owe their Estate th outstanding loan).

Income tax?
* Not on the original loan.
* not on the proposed sale to parents.

Land Registry will advise on the phone what forms are needed, and what ID procedures, in order to sell to parents.

Or see their guides:

http://www.landregistry.gov.uk/public/guides

xylophone

???

The parents took out an equity release loan on their house. This gave them a lump sum of money.

If they gave this lump sum to their son, then there is an IHT consideration (though possibly a PET). http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

If they lent this sum to their son and he is now paying them the equivalent of interest, there is the possibility of an income tax liability?

The son owns the flat - he is proposing transferring ownership of the flat to his parents - a gift? (see IHT link above) or in consideration of a loan? (If they made a loan - this is unclear.)

The flat ends up in the parents' name. It is not their PPR (they still have the original family home on which they took out the equity release).

The parents sell the flat - CGT liability?

Then there is any possible complication arising from the Scottish legal system (the flat is in Scotland it appears).

In the OP's place I'd take professional advice.

G_M

Oh bl*dyell.... sookaland.

I take it all back.....

CLC1

Hi, this is not a reply to your post but as I don't know how to post yet, I thought someone in your threads might be able to answer my question. Hope you don't mind??
I am 42 and live with my elderly parents. Sixteen years ago I bought our council house with their discount. The mortgage was setup in my name and paid entirely by myself with my wages, however, because of the way we purchased the house, all three names were put on the deeds. We had an arrangement between ourselves that I would pay the mortgage and they would pay the bills. At my mother's choice, I have never paid any board. The mortgage was finished 18 months ago. I have been asking them for years now to get their names removed from the ownership but to no avail. The agreement was originally to take their names off 5 years after the purchase (part of the sale agreement was that the house could not be sold for 5 years). I have no rights in the house. I make no decisions, no alterations, NOTHING!! My parents control it and ME!. For years now, I have felt that I didn't buy a house, I just paid a mortgage. Everytime I bring the subject of ownership up, they fly off the handle and I am quickly put back in my place and told that I only own a third share and I can do what I want with it once they're gone.They are not prepared to discuss anything with me or my siblings and that includes wills. They have always said that when the time comes, the house will automatically pass to me. I am going to seek legal advice on where I stand but if anybody can shine any light on my situation, please feel free to comment. Anything is better than nothing!

BigAunty

CLC1 wrote: »

My parents control it and ME!. For years now, I have felt that I didn't buy a house, I just paid a mortgage. Everytime I bring the subject of ownership up, they fly off the handle and I am quickly put back in my place and told that I only own a third share and I can do what I want with it once they're gone.

EDIT - to post a new topic, rather than hi-jack this one, see the blue 'New Thread' button on the left handside of the page, below the menu items and above the start of the new thread listings.

On the topic of children being screwed over by the parents to fund their accommodation who renege on their promises and get hostile, join the club, it's more common than you think, though at least these two didn't have to live with them. Verbal agreements are worth the paper they are written on.

https://forums.moneysavingexpert.com/discussion/4859484

https://forums.moneysavingexpert.com/discussion/3762265

BitterAndTwisted

If you paid the mortgage on a council right-to-buy then that would probably have cost you less than you would have paid in rent.

As you only own a third you are in a very weak position to do anything unless your parents both agree, and as long as they are in a position to prevent you selling up from under them or throwing them out you aren't going to get anywhere.

You need to tread very carefully in case they leave their shares to the cats home rather than you.

00ec25

CLC1 wrote: »

I have no rights in the house. I make no decisions, no alterations, NOTHING!! My parents control it and ME!. For years now, I have felt that I didn't buy a house, I just paid a mortgage. Everytime I bring the subject of ownership up, they fly off the handle and I am quickly put back in my place and told that I only own a third share and I can do what I want with it once they're gone.They are not prepared to discuss anything with me or my siblings and that includes wills. They have always said that when the time comes, the house will automatically pass to me.

and your anger is because...
- you can't wait for your inheritance?
- you want to sell even if it means your parents are turfed out?
- you don't want your siblings to get a share?

as there are 3 co-owners of the property it must be as tenants in common (by definition it cannot be joint owners) so on death you will not automatically get the house unless there is a will which clearly states that
if parents died without a will (called dying intestate) then there is a rigid list of who gets what - of their 2/3 share of the property the surviving parent would get a bit and you and your siblings would get a bit in equal shares - here are the England and Wales rules ....
http://www.adviceguide.org.uk/wales/relationships_w/relationships_death_and_wills_e/who_can_inherit_if_there_is_no_will___the_rules_of_intestacy.htm