Transfer of Ownership Query

Plasticomo

I am the joint owner of a property with my dad with about £30,00 remaining to pay on the mortgage. He does not live there, he has his own house. We are currently in the process of transferring it into my name as I am in a position to be able to pay it alone and he doesn't want the hassle. Is there a simple and easy and fairly cheap way to transfer his half to me without incurring lots of costs. It's already costing us £180 admin fee just to put the mortgage in my name alone, and there will be solicitors fees. Can anyone recommend a particular solicitor or chain that deals with this type of thing. I'm also concerned that I may have to surrender his half in certain circumstances. Does this seven year rule thing apply in which if my dad dies within that time or needs funds for care that his half of my home will automatically be taken or have to be given when I pass on?  Is part gifting of property on a yearly basis possible and is it easy to do. Also, is putting the property in a trust fund an option? Any help would be appreciated

Keep_pedalling

In order to help you, could you answer some questions that remain unanswered from your previous threads on this subject please?

You were concerned about his share of his house being used for care costs, but this is unlikely to be an issue if he has other major assets. So how much is his home worth and are there any other dependant people living there?

The 7 year rule applies to inheritance tax, there is no defined period where deliberate deprivation of assets Is concerned.

If he wants to be off the mortgage then the only way to do it is to transfer his entire share in one go, which may or may not require him to pay capital gains tax. How much did you purchase the house for and what is its current value?

Plasticomo

Keep_pedalling said:

In order to help you, could you answer some questions that remain unanswered from your previous threads on this subject please?

You were concerned about his share of his house being used for care costs, but this is unlikely to be an issue if he has other major assets. So how much is his home worth and are there any other dependant people living there?

The 7 year rule applies to inheritance tax, there is no defined period where deliberate deprivation of assets Is concerned.

If he wants to be off the mortgage then the only way to do it is to transfer his entire share in one go, which may or may not require him to pay capital gains tax. How much did you purchase the house for and what is its current value?

His home would be worth about £140,000. No others live there, my mum did but she went into a home a about 10 weeks ago after a stay in hospital and a respite centre.

House was purchased for £99,000 and probably now worth £120,000 so not increased dramatically in value in that time

Keep_pedalling

Plasticomo said:

Keep_pedalling said:

In order to help you, could you answer some questions that remain unanswered from your previous threads on this subject please?

You were concerned about his share of his house being used for care costs, but this is unlikely to be an issue if he has other major assets. So how much is his home worth and are there any other dependant people living there?

The 7 year rule applies to inheritance tax, there is no defined period where deliberate deprivation of assets Is concerned.

If he wants to be off the mortgage then the only way to do it is to transfer his entire share in one go, which may or may not require him to pay capital gains tax. How much did you purchase the house for and what is its current value?

His home would be worth about £140,000. No others live there, my mum did but she went into a home a about 10 weeks ago after a stay in hospital and a respite centre.

House was purchased for £99,000 and probably now worth £120,000 so not increased dramatically in value in that time

Assuming ownership is currently 50/50, his share of the gain is only £10,500. Everyone has an annual CG allowance of £12,300, so unless he has any other significant gains in the year of transfer he would have no CGT to pay.

Providing your father currently has no health issues that could lead to requiring residential care then gifting you his share of the house is unlikely to be treated as deliberate deprivation of assets as he still has significant assets to fund care.

Plasticomo

One other question. When working out CGT does it go on the average for the area or actual value of the house. I've been in 16 years and have really neglected it so lots wants doing, no central heating just has warm air, kitchen, bathroom and all other rooms in dire need of renovation. Probably needs rewiring too

Keep_pedalling

Plasticomo said:

One other question. When working out CGT does it go on the average for the area or actual value of the house. I've been in 16 years and have really neglected it so lots wants doing, no central heating just has warm air, kitchen, bathroom and all other rooms in dire need of renovation. Probably needs rewiring too

Actual market value.