Transfer of Ownership Family home Mortgage free, freehold.

azz007

Hi wondering if anyone can offer some simple easy advice in steps to do with a family home 7 siblings. 

In essence the house, 3 original owners on mortgage. Mum dad and sister. Now freehold and mortgage free. 

Both parents have passed and now sister is the only one active on the title deeds. 

She now wants to add all 6 siblings onto the deeds, so we are all included in the ownership of the property. 

Whats the best way to do this, as I know only 4 main holders can go on the deeds.if so, How are the 3 remaining siblings put onto the deeds as well?

Does it need to be as a Trust or Will. What's the best method to all getting equal ownership. Or a couple siblings might want a higher share as they've contributed to refubrs etc. To have a higher stake in the property. 

Any advice is mostly welcome and appreciated. 

Thanks. 

Keep_pedalling

How was ownership set up, joint tenants or tenants in common? If the former then your sister now owns the property outright, if the latter she owns 1/3 and the rest depends on your parents wills or the intestacy rules if they did not have wills.

Does your sister live there? If it is not her main residence then she may have capital gains tax to pay on any transfer. Also owning a small share of the house will cost any of her siblings dearly they don’t already own a home as they will have an extra 3% stamp duty when they do buy, and they will also lose any first time buyer incentives.

If this is her home and she owns it outright then she should simply make a will leaving it to her siblings and don’t even think about trusts.

azz007

Keep_pedalling said:

How was ownership set up, joint tenants or tenants in common? If the former then your sister now owns the property outright, if the latter she owns 1/3 and the rest depends on your parents wills or the intestacy rules if they did not have wills.

Does your sister live there? If it is not her main residence then she may have capital gains tax to pay on any transfer. Also owning a small share of the house will cost any of her siblings dearly they don’t already own a home as they will have an extra 3% stamp duty when they do buy, and they will also lose any first time buyer incentives.

If this is her home and she owns it outright then she should simply make a will leaving it to her siblings and don’t even think about trusts.

Thanks for the reply. To put it simply 3/7 siblings have their own homes with a mortgage Including my sister. So will there be any implications if their names a added to the house deeds.

Not sure what ownership was at the time neither does she remember. She happy to add 3 additional names, and replacing my parents.

Atm 3 other  siblings live there, it's a large home.

I did briefly find out from a solicitor that if you are just adding names onto the title of your family home, at nil value, then no stamp duty will be payable. 

In terms of capital gains taxes not sure what will be applicable, or any other kinds of tax.

The house won't be put in rent or anything else to generate income. 

Keep_pedalling

How the property is owned is crucial, if its tenants in common it is not entirely hers to give away. Did your parents have wills?

You can check with the land registry to see if there is a form A restriction. If you see the following it is tenants in common.

No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court

https://www.gov.uk/get-information-about-property-and-land/copies-of-deeds

azz007

Keep_pedalling said:

How the property is owned is crucial, if its tenants in common it is not entirely hers to give away. Did your parents have wills?

No Wills unfortunately. 
I have a feeling its joint tenants and she is sole owner now. 

So she's liked to add 3 siblings onto deeds and rest on a will.

Reasons to add onto deeds is because of the house has been maintianed, refurbed etc by siblings living there who now have a financial interest in the property. 

Keep_pedalling

azz007 said:

Keep_pedalling said:

How the property is owned is crucial, if its tenants in common it is not entirely hers to give away. Did your parents have wills?

No Wills unfortunately. 
I have a feeling its joint tenants and she is sole owner now. 

So she's liked to add 3 siblings onto deeds and rest on a will.

Reasons to add onto deeds is because of the house has been maintianed, refurbed etc by siblings living there who now have a financial interest in the property. 

Don’t rely on a feeling, check via the link I provided. 

sheramber

Firs of all you need to establish what ownership is stated on the deeds, as that determines how you go forward.

azz007

I can check the deeds when I next see her. But out of curiosity with joint tenancy and tenants in common what are the two ways it can go forward ? 

housebuyer143

azz007 said:

I can check the deeds when I next see her. But out of curiosity with joint tenancy and tenants in common what are the two ways it can go forward ? 

It was mentioned earlier. Tenants in common means that she will have to follow the will when making changes to the title or the rules of intestacy if there was no will. 
If she is a joint owner then the property is now legally all hers to do as she wants.

RAS

azz007 said:

I can check the deeds when I next see her. But out of curiosity with joint tenancy and tenants in common what are the two ways it can go forward ? 

The property might not be registered, although I'd hope the deeds aren't just sat in a cupboard.

More likely, it's already been registered and it costs the extortionate sum of £3 to download from the gov.uk Land Registry website and to find out if there is a restriction as Keep_peddling suggests.

km1500

the ither way might be via a declaration of trust amongst the 7 siblings