Transfer of equity

xylophone

But as the partner is not your spouse/civil partner, and apparently he owns the house, will this transfer not be counted as a gift?

Was the house always his principle private residence?

You say that this is your home and that you paid the deposit and the mortgage, were you therefore making gifts all this time?

Might it be worth clarifying the position?

Sycorax

I appreciate the concern regarding taxation and the status of the disposal and yes I misread something and I agree it is a disposal in the sense it's a transfer of ownership.

The property was bought 2 years ago in his name only as at the time I was unemployed and therefore couldn't get a mortgage, getting a joint mortgage was disadvantageous (because even though I was the one with the cash), because I had no regular income I was classed in the lenders eyes as a dependent and therefore this impacted on the amount of the loan.

However, I paid the deposit (which was a gift) and have been making the mortgage payments ever since. I will be settling the balance of the mortgage within the next few weeks, at which point we'll undertake the transfer of ownership.

There has been no increase in the market value of the property during this time and therefore no capital gain. There is no intention to sell.

It has been both our main residence during this time, he owns no other properties (although I do which will have a CG liability when it's sold).

I think they're the pertinent bits of the tale I appreciate the input from everyone.

Sycorax

Land_Registry_representative wrote: »

If the property is registered and in England or Wales then our online guidance explains how to transfer the ownership - as there is no mortgage then is there any equity involved as that term is normally used to describe what is left with regards the value of a property less what is outstanding on the mortgage.

One thing I'm struggling with on the online guidance is the fee and which category this situation (transfer of ownership) would come under.

The video shows a table giving certain thresholds, but the 'fee' page gives a list of categories not which seem to exactly fit the situation. I'm also unclear as to the 'fee' versus 'electronic fee'.

Land_Registry

Sycorax - if the Transfer is 'not for value' then the fee is payable using Scale 2 and the band width is based on the current market value of the property.

The 'electronic fee' you refer to is a separate registration payable on applications submitted electronically - only business customers with an account with us are able to use that service currently so would only apply for example if you were using a conveyancer with such an account

Sycorax

Land_Registry_representative wrote: »

Sycorax - if the Transfer is 'not for value' then the fee is payable using Scale 2 and the band width is based on the current market value of the property.

The 'electronic fee' you refer to is a separate registration payable on applications submitted electronically - only business customers with an account with us are able to use that service currently so would only apply for example if you were using a conveyancer with such an account

Great! Thank you so much again, your help has been invaluable, I do appreciate it.

TonyMMM

Sycorax wrote: »

My partner and I are cohabiting (common law)

There is no such thing as a Common Law relationship in E/W .... make sure you are properly protected with your Wills etc.

Sycorax

Wills already done and dusted and get updated every time there's a change of circumstance.

CLAPTON

it would seem to me, that HMRC would take the view that you were already the beneficial owner as you paid the deposit and the mortgage and it was always the intention for it to be yours.

Sycorax

I guess that's my (and my partners) take on it too Clapton.