Daughter living in second home - can I put her on the title deeds ?

Boris27

I bought a second property 2 years ago with my wife and I as joint owners. Since purchase (no mortgage) my daughter has lived in it and paid me rent which I have declared as taxable income. My daughter will continue to live there but I now want to put her on the deeds as a joint owner with my wife and I. Is this easy to do ?

POPPYOSCAR

Yes it is easy to do.

But be aware you and your wife may face a CGT liability on her share.

dotchas

Be aware that your daughter may not be considered a FTB if she goes on to purchase a property.

PasturesNew

Be careful, if she's ever going to buy her own home this act of generosity might prevent her from obtaining access to special grants or terms etc... right now, if you'd already done it and if she were now looking to buy her own place she'd have to pay the higher rate stamp duty as she'd already be seen as "owning a home".

So tread carefully and think about what you're doing and why.

G_M

TR1; ID1; AP1


https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1



But there are factors to consider:


* you'll not be able to sell without her agreement
* or her husband's agreement if she marries?
* your credit files will be linked (hmm... maybe, not sure)
* she'll not qualify for for FTB benefits later
* she might have to pay extra SDLT if she buys elsewhere later
* CGT (though that is already relevant)
..........

silvercar

G_M wrote: »

TR1; ID1; AP1


https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1



But there are factors to consider:


* you'll not be able to sell without her agreement
* or her husband's agreement if she marries?
* your credit files will be linked (hmm... maybe, not sure)
* she'll not qualify for for FTB benefits later
* she might have to pay extra SDLT if she buys elsewhere later
* CGT (though that is already relevant)
..........

CGT will be already relevant as a future sale will have the liability dating back to ownership.

If you now dispose of a percentage by gifting (or selling) to your daughter the transaction is assumed to have taken place at market value (as you are related). So the CGT calculation kicks in now for that percentage share. If you are only transferring an amount that equals your CGT allowance (you and your wife) then there will be no CGT to pay; any more than that and there is potential tax to pay. Though worth noting that if you keep transferring a few percentage points of the total value, you can use the CGT allowance each financial year.

MoneyGeoff

Sorry to be morbid but if your daughter marries and dies then her husband would probably inherit her third share of the house. He would also be able to force you to sell it or buy him out.

konark

Lot of 'ifs' isn't there.

getmore4less

Will you still want rent?

If you had sold her part when bought and been her lender, her paying you back there would be not need to declare as long as no interest was charged.

gettingtheresometime

konark wrote: »

Lot of 'ifs' isn't there.

Maybe but better to be forewarned

bris

konark wrote: »

Lot of 'ifs' isn't there.

Yes for good reason, those if's have came back to bite a lot of people.