Transfering House Between Siblings.

gunner786

Hi,

Situation is that our main family home is in my sisters & mums name. It has £100,000 mortgage left on it and we want to transfer it into my name and for me to take over the mortgage.

Will there be any taxes to pay? We have been told that she can gift it to me and there will be no extra costs but im also reading about this capital tax gains aswell.

00ec25

who lives in it as their only/main home?

all 3 of you ?
or only some of you?

you cannot "take over" a mortgage. You can get a new mortgage in your own name. There is a difference....

theartfullodger

Are the mortgage lender happy for you to "take over" the mortgage? What conditions have they imposed?


Why do you think they will let you "take it over"?

G_M

1) Value of property?

2) Purpose?

What are you trying to achieve?
Why is the property currently in mum & sister's names?
Why do you, and they, want it in yur name?

3) who lives there?
Any other siblings?

4) mum's age?

5) Capital Gains Tax may be due if mum & sister don't both live there. And if they do, where will they live after you take ownership?

6) SDLT will be due on the £100K mortgage value. And on any amount you pay them for the transfer.
Do you own any other property? If so, additional SDLT will also be due

7) do you understand "Deprivation of Assets"? If not, Google it.

gunner786

G_M wrote: »

1) Value of property? £280,000

2) Purpose?

What are you trying to achieve? Is my house but just used their name
Why is the property currently in mum & sister's names? Bought the property in their name cos i had bad credit
Why do you, and they, want it in yur name? Its my house but in their name

3) who lives there? All 3 of us
Any other siblings? Yes.

4) mum's age? 60

5) Capital Gains Tax may be due if mum & sister don't both live there. And if they do, where will they live after you take ownership? Will keep on living there

6) SDLT will be due on the £100K mortgage value. And on any amount you pay them for the transfer.
Do you own any other property? If so, additional SDLT will also be due. No other properties

7) do you understand "Deprivation of Assets"? If not, Google it.

Answered your questioms mate

AnotherJoe

Have you enquired about getting a mortgage ?
Are you debts cleared and the situation better?

G_M

1) Value of property? £280,000

2) Purpose?

What are you trying to achieve? Is my house but just used their name
Why is the property currently in mum & sister's names? Bought the property in their name cos i had bad credit
Why do you, and they, want it in yur name? Its my house but in their name

3) who lives there? All 3 of us
Any other siblings? Yes.

4) mum's age? 60

5) Capital Gains Tax may be due if mum & sister don't both live there. And if they do, where will they live after you take ownership? Will keep on living there

6) SDLT will be due on the £100K mortgage value. And on any amount you pay them for the transfer.
Do you own any other property? If so, additional SDLT will also be due. No other properties

7) do you understand "Deprivation of Assets"? If not, Google it.

Question 7 needs answering.


So a gift of £180K from them to you.If they own as joint tenants, that's £90K each. If either dies within 7 years, their £90K gift would be included in their Estate for Inheritance Tax.
If owned as Tenants in Common, then gifts as per the associated deed.
Though as they intend to remain living there, it would be a 'gift with reservaton' so
* the 7 year rule may not apply (the gift remains in their Estate)
* deprivation of assets more likely to apply


So Inheritance Tax, and SDLT will apply. CCGT will not. DofA probably will.


As others have said, the main issue is your application for a new mortgage in your name.


Mate.

gunner786

Yes eligible for a mortgage now.