Splitting ownership

Noodle81

My Mum helped me with financial trouble i was in. To make sure i paid her back I said I would transfer 50% of the ownership of my current property to her. Is this simply a case of completing a form? no money will exchange hands.

getmore4less

Is there a mortgage

General not a good idea.

Noodle81

There is a 50k mortgage on a flat worth 100k.

getmore4less

With a mortgage you would need the lenders permission.

Were you planning to giver £50k or 1/2 the equity £25k

There are tax implications if your mum does not live there and it goes up in value.

Would it be easier to just owe her the money and start paying it back.

Noodle81

Half the house ie £50k. It just means if anything happens to my Mum she knows I'll not end up with more than my Sister. Thinking maybe easier to get her will changed.

Keep_pedalling

Noodle81 wrote: »

Half the house ie £50k. It just means if anything happens to my Mum she knows I'll not end up with more than my Sister. Thinking maybe easier to get her will changed.

That would be the sensible thing to do.

Mortgage_Adviser

Instead of transferring her the part ownership of the property you may want to look at the other options as well. Such as her having some charge against the property.
Increasing the assets for an elderly person is not usually a great idea as your house can be considered as her asset thta can be sold if she needed a full time care.
It can also become a a part of her asset for inheritance tax liability.


I would suggest you seek qualified tax advice on this.