Transfer of equity

Glengowrie

My husband and I bought a ground floor flat for my mother so as not to lose it pending the sale of her first floor flat. We loaned her some money interest free. No mortgage involved in either property. Her first floor flat has now sold and she has repaid us. We now want to add my mother as a joint owner of the new flat. Is Transfer of Equity the right procedure? We will instruct solicitors to do this but does anyone have any idea of approximate costs? Also we are extending the lease on the new flat (we own part of the freehold so a fairly simple procedure). Would it be best to do the lease extension in just our two names first and then add my mother as an owner, or the other way round, or does it not make any difference?

booksurr

so the flat is mother's main residence but not yours?

if so at the point you add her as an owner you will become liable to Capital Gains Tax on any increase in value since you bought it as you and she are "connected persons"

although she has repaid the loan, in return you are now making her an owner, so take care she does not get hit for Stamp Duty on the money she paid you since "consideration" has been exchanged. She paid you money, she gets a property in exchange. Your solicitor will advise you on that one!

as for costs, this makes "interesting" reading ...
http://freeconveyancingadvice.co.uk/remortgages-transfers/transfer-of-equity