Buying brothers unmortgaged house for cash, can we swap money for title deeds or is there more to it

village_saver

Thanks again everyone.

It is currently his main residence . He has inherited our mums property and will move in to that.

As far as I know he hasn’t registered a change of ownership on it yet.

Just to clarify - we will be liable for stamp duty on the purchase price?

We can fill out the land registry forms for change of ownership to us and pay him the cash?

Is it easy to do without the need for a solicitor? 

SDLT_Geek

village_saver said:

Thanks again everyone.

It is currently his main residence . He has inherited our mums property and will move in to that.

As far as I know he hasn’t registered a change of ownership on it yet.

Just to clarify - we will be liable for stamp duty on the purchase price?

We can fill out the land registry forms for change of ownership to us and pay him the cash?

Is it easy to do without the need for a solicitor? 

village_saver said:

It is currently his main residence . 

Just to clarify - we will be liable for stamp duty on the purchase price?

You as buyer, not your brother, is liable for stamp duty land tax on your purchase (assuming the property is in England).

canaldumidi

As slithery said earlier:

If it's already registered in his name then the paper deeds are meaningless, ownership is recorded by the LR.

You need to complete forms TR1, ID1 and AP1 and return them to the LR with the relevant fee...

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/808730/TR1__2019-06-17_.doc

Guide here...

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property

michael1234

Seems ridiculous to me that we tax a family for moving a property from one member to another when a third dies.

I'm not one generally for dodging SD but in this case it seems morally justified if possible. Could you "rent" your brother's house for zero rent and at the same time give him a "loan" with zero interest? Does it matter what the LR actually says assuming you and your brother trust each other fully ?

canaldumidi

michael1234 said:

Seems ridiculous to me that we tax a family for moving a property from one member to another when a third dies.

There is inheritance tax on an Estate when someone dies - if that's not to your taste, speak to your MP.

In this case, the house in question does not appear to be partof the deceased's estate, sono IHT.

It's a simple quesion of one family member buying a propety from another family member, just like any normal property sale. As such, SDLT applies.

user1977

michael1234 said:

I'm not one generally for dodging SD but in this case it seems morally justified if possible. Could you "rent" your brother's house for zero rent and at the same time give him a "loan" with zero interest? Does it matter what the LR actually says assuming you and your brother trust each other fully ?

Even if that worked, have a think about the other consequential complications e.g. it means the brother than has the CGT liability on the "OP's" property, as well as all the other obligations of being a landlord.