Joint House Ownership and Assets Help

Plasticomo

I am the joint owner of a property with my dad who is helping me to buy it. We have about £30,00 left remaining on the mortgage. He has suggested signing it over to me as it occurred to him that his share may be counted when it comes to being assessed for care costs should they be needed.  He does not live there with me as he has his own house. It's just my own house I'm bothered about and whether there could be any claim on his half of the property if and once I sell or move.  What is the best/easiest way for him to sign the house over to me and who would I have to contact

pphillips

You first need your lender to agree to the transfer, then you need a solicitor or conveyancer to do the transfer because the property is mortgaged.

Plasticomo

Someone mentioned doing it via the Land Registry. There is a fee for this but it's not that much. Is this feasible. I've seen a section/form on the site about property ownership?

elsien

Will will you pass the affordability checks to take on the rest of the mortgage on your own so your dad can be taken off it? 

[Deleted User]

Plasticomo said:

Someone mentioned doing it via the Land Registry. There is a fee for this but it's not that much. Is this feasible. I've seen a section/form on the site about property ownership?

Not whilst there is a mortgage secured against the property. 

Plasticomo

elsien said:

Will will you pass the affordability checks to take on the rest of the mortgage on your own so your dad can be taken off it? 

Yes, that's one of the main reasons for me doing it. I can afford to take over now and he doesn't want the hassle of having the responsibility.

[Deleted User]

The disposal of your father's share of the property could trigger a Capital Gains Tax liability for him which will need to declared and paid to HMRC within 30 days of the transfer.

Plasticomo

Lover_of_Lycra said:

The disposal of your father's share of the property could trigger a Capital Gains Tax liability for him which will need to declared and paid to HMRC within 30 days of the transfer.

But you're only gaining something monetary if you sell it surely?

[Deleted User]

Plasticomo said:

Lover_of_Lycra said:

The disposal of your father's share of the property could trigger a Capital Gains Tax liability for him which will need to declared and paid to HMRC within 30 days of the transfer.

But you're only gaining something monetary if you sell it surely?

Not necessarily. Your dad’s share will be assessed at the market rate for CGT purposes even if he gives it to you for nothing.