Partial transfer of deeds

JulianneWebster

Hi
My mother and myself are both stated on the deeds of our home - myself 99% and mum 1%. 
My mother no longer wishes to be on the deeds and would like to transfer to me her 1%. No money will change hands, as I actually own the house and she was only added to help assist in being a guarantor many years ago. My mortgage is now paid and therefore she is not required to remain on the deeds. 
All I would like to check is do I complete the Land Registry TP1 form (part) or TR1 form (whole)? On reading the Land Registry FAQ is explains "TP1 - Use this form to transfer part of a registered title - for example where a house and garden are registered under one title and you want to sell part of the garden."
She doesn't want to transfer a physical part of the property, simply her percentage, so is it still correct to complete TP1 in our situation?
Many thanks

Falafels

There's a Land Registry rep on this forum, and you might like to confirm the process with her. Whatever, you don't need a TP1.

The TP1 is for when you want to sell your garden to a neighbour, say, but keep the house. As you say, your mother doesn't want to transfer a physical part of the property but just relinquish her share in it so that you are the only one named on the deeds - but will own 100% of the title as it stands. It's comparable to someone buying an ex-partner out. This has nothing to do with a Transfer of Part, which does relate to a physical part.

For example, I owned a house with a garden, but included in the title was a small plot of land, over the other side of next door, which was in the process of being transferred to the local water authority. When I sold the house I did so under a Transfer of Part, because my buyer was only getting the house and garden. I could theoretically have kept the small plot of land if I hadn't been transferring it to someone else.

justworriedabit

We did it a few years ago - gifted two flats - AP1 were used and something call 1D1 - all were cash so like you no cash involved/loans - had to deal with lease same time you don't - as no money changes hands, no stamp or other fees apart from solictors confirming your ID's but i think others that may be cheaper or cost nothing may be able to do the 1D1's -  look up LR they do good videos as well

Tiglet2

It's a Transfer of Equity from two to one proprietor, therefore:

AP1
TR1
ID1

All doable yourself as there is no money changing hands and no mortgage.  I cannot advise on any tax implications.

I am assuming you hold the property as Tenants in Common, so there will be a Form A TIC restriction on the title.

At some point you may wish to remove a Form A restriction.  This happens when a property is held as tenants in common and is then transferred into the sole name of one of the joint owners. It is to prevent a sale or other transaction (such as a mortgage) being registered unless it is by two or more trustees. It will not prevent the transfer from two names to one because both joint owners will sign as the transferors, however if the remaining owner then wishes to mortgage the property, the Land Registry will not register the new mortgage as the transaction will only be by one trustee. The same would apply of the sole owner attempted to sell.

Two things are required to remove a form A restriction. First, the owner or owners need to sign Land Registry form RX4 and second, the owner(s) needs to swear a “Statutory Declaration as to Equitable Title”. Swearing means signing in the presence of a solicitor and a statutory declaration is a sworn statement of fact, like an affidavit. The statement confirms that the owner(s) is fully entitled to the equity in the property no third party not named on the title is entitled to a share. To be valid it needs to be worded in a particular way and should be drafted by a solicitor. Note that the solicitor in the presence of who the declaration is sworn cannot draft the document.

Hope that helps.

ibex100

Tiglet2 said:

It's a Transfer of Equity from two to one proprietor, therefore:

AP1
TR1
ID1

All doable yourself as there is no money changing hands and no mortgage.  I cannot advise on any tax implications.

I am assuming you hold the property as Tenants in Common, so there will be a Form A TIC restriction on the title.

At some point you may wish to remove a Form A restriction.  This happens when a property is held as tenants in common and is then transferred into the sole name of one of the joint owners. It is to prevent a sale or other transaction (such as a mortgage) being registered unless it is by two or more trustees. It will not prevent the transfer from two names to one because both joint owners will sign as the transferors, however if the remaining owner then wishes to mortgage the property, the Land Registry will not register the new mortgage as the transaction will only be by one trustee. The same would apply of the sole owner attempted to sell.

Two things are required to remove a form A restriction. First, the owner or owners need to sign Land Registry form RX4 and second, the owner(s) needs to swear a “Statutory Declaration as to Equitable Title”. Swearing means signing in the presence of a solicitor and a statutory declaration is a sworn statement of fact, like an affidavit. The statement confirms that the owner(s) is fully entitled to the equity in the property no third party not named on the title is entitled to a share. To be valid it needs to be worded in a particular way and should be drafted by a solicitor. Note that the solicitor in the presence of who the declaration is sworn cannot draft the document.

Hope that helps.

Tiglet2 you have answered the question here that I had about whether the Form A restriction would prevent the transfer from two names to one. However, it has now raised another question. If both joint owners sign as the transferors, then ticking the box "the transferor has received from the transferee...etc" is not strictly correct as only one transferor has received the funds. Is that correct?