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Transfer of Ownership/equity Remortgage

edited 30 April 2020 at 5:41PM in Mortgages & Endowments
6 replies 101 views
Sarah_House1Sarah_House1 Forumite
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edited 30 April 2020 at 5:41PM in Mortgages & Endowments
Hi,
Wondering if anyone can help with some advice on this.
When I separated from my husband 13 years ago my Dad came on my mortgage as I couldn't pass affordability on my own salary. I now wish to remortgage and remove my Dad from the mortgage and add my new partner - I say new but we have been together for 11 years! Throughout this time I have paid for the mortgage myself with no contribution by anyone else. My house is valued at 300k and my remortgage is 180k  - this is 155k for outstanding mortgage and 25k for home improvements.
So I have 2 concerns at the moment:
1) Will there be any issues with stamp duty by removing my father and adding my partner?
2) My solicitors are asking for my Dad to see a solicitor however due to him being high risk he cant leave the house for the next 3 months so how can I get around this? Does anyone know of an online solicitor that could help with this or is it a case of him waiting until he is allowed back out again? 
Any help would be appreciated,
SJ

Replies

  • MovingForwardsMovingForwards Forumite
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    1. Has your dad ever lived in your place or does he have his own?

    2. Probably 'seen' by telephone / email, rather than attending the office as most firms are closed and working from home.
  • blue_max_3blue_max_3 Forumite
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    Sarah, I urge you to keep the house in your own name. Keep your independence and financial security. You've done all the heavy lifting on this and only have things to lose.
  • Sarah_House1Sarah_House1 Forumite
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    @MovingForwards
    1)My Dad has never lived in the house and owns his own house.
    2) The document sent to him talks about ID being witnessed for ID1 form. Is this something that can be done remotely? 
  • MovingForwardsMovingForwards Forumite
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    @Sarah_House1

    1. He will probably have to pay capital gains tax - other members will be able to comment on that.

    2. Post office do ID certification, as do other 'offical' people eg doctor, dentist, police etc so if anyone like that knows him, but not family, they can do it. Best off seeing exactly what the solicitors acting for him would accept and how they would want it done.
  • yllop1101yllop1101 Forumite
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    Hi SJ, 
    I did a transfer of equity recently, taking my ex partners name off my mortgage. Stamp duty depends on the amount of money you're giving your dad (I think if it's over 40k), I'm unsure of capital gains tax though.
    My ex partner was advised to get a solicitor but he didn't. We had an amicable split and agreed the equity amount to be transferred after we had a professional valuation of the property. I paid my own solicitor a slightly extra fee because she had to include extra communication to my expartner alongside the formal legal wording so he could understand it, however otherwise its perfectly possible to proceed without one on the other side. 
    My ex partner had to do an ID1 form too- it's so essentially going forward your solicitor can be sure your dad's signature is actually his. I would guess for this reason some sort of in person check would need to be completed. 
  • Sarah_House1Sarah_House1 Forumite
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    Thanks for the help so far. Sorry for delay in replying. I'm just so confused by it all and it's been making me really anxious and tearful so tried to step back from it.
    I dont have the money to pay huge a CGT bill, which by my calculation could be about 11k! When I talk to a solicitor they tell me they can't advise on this and I have to speak to an accountant. 
    I think the best thing will be to just cancel it and leave it as it is. Just frustrating as I'm on a really high rate with the company who took over my Northern Rock mortgage. 
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