We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Transfer of Property affecting First Time Buyer status
Options

Moooli
Posts: 7 Forumite

Hello good folks, I'm jumping in with a request for some advice.
Having moved house myself, I now intend to transfer my previous property to my son. He and his GF are planning to buy a house of their own and he intends to sell my old house to help with this. He has been told by an insurance broker that we should stay our hand and not transfer the property to him. Presumably so that he can benefit from being a first time buyer. As they do not intend to buy a new build however, I disagree with this advice. But is there anything that I don't know? Is there some other benefit for being a first time buyer, where owning a property puts you at a disadvantage?
Thanks for any advice!
Having moved house myself, I now intend to transfer my previous property to my son. He and his GF are planning to buy a house of their own and he intends to sell my old house to help with this. He has been told by an insurance broker that we should stay our hand and not transfer the property to him. Presumably so that he can benefit from being a first time buyer. As they do not intend to buy a new build however, I disagree with this advice. But is there anything that I don't know? Is there some other benefit for being a first time buyer, where owning a property puts you at a disadvantage?
Thanks for any advice!
0
Comments
-
Yes, the SDLT concession for first time buyers won't apply to them if he's previously owned a property.
If the plan is just to sell the property so he can have the sale proceeds, what's the point of transferring title to him first? That appears an undesirable complication and expense. Why don't you just sell it yourself and give him the money?4 -
I could sell it myself, but they have resided at the house for 2 years and I wanted to gift it to them to either remain there, or to sell before buying a property of their own. No point in me finding a buyer, only for them to tell me that they can't move out because they have nowhere to go! There is no expense involved in the transfer of title, apart from a nominal Land Registry fee.
So apart from an SDLT concession, what other benefit would he have from being a first time buyer, if he were not buying a new build?
TIA0 -
Moooli said:So apart from an SDLT concession, what other benefit would he have from being a first time buyer, if he were not buying a new build?1
-
Thanks Davidmcn, sorry for any confusion in my post. My son, I think, would be quite happy to stay put for a while yet, but they have spotted a lovely house and are weighing up their options. Nothing is set in stone, but I understand that they are talking to brokers about getting an agreement in principle for the mortgage (this is where the 'advice' re-first time buyers has come from).
I appreciate your help, many thanks0 -
so it is more than (?) 2 years since you moved out of the property yourself and it ceased to be your own main residence?
your son will:
a) lose the ability to claim first time buyers mortgage rates - which of course is mostly a lender's marketing con, so not worth getting too fussed over
b) lose the SDLT concession on any property he himself purchases as the will no longer be a FTB
Either way, you will have to pay capital gains tax on any amount exceeding your CGT allowance, since it appears it ceased to be your main home more than 9 months after your left it
what have you done about council tax liability on the property since you moved out? It would appear you no longer "occupy" it, so is the son now the council taxpayer?
1 -
The benefit of first time buyers' relief for SDLT is suspended until 31 March 2021. So if OP's son is planning to purchase by then, having owned another property will not adversely affect the SDLT position. https://www.blakemorgan.co.uk/stamp-duty-land-tax-holiday/0
-
Moooli said:There is no expense involved in the transfer of title, apart from a nominal Land Registry fee.
0 -
Just on the 2 years. Council tax is paid by him.0
-
Ah I forgot about CGT! Just done a quick calculation online ... definitely do-able. Thanks for the reminder folks, appreciated.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.5K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards