DIY transfer of property to family member

papatango_2

Not sure if this has been asked before but basically my wife & I own a buy to let property which we now wish to gift to our daughter and son in law. The property is in the names of my wife and myself and we have no mortgage on it. There will be no cash involved - it will be an outright gift to the two of them. I have done some research and believe that there are two forms that I will need to do this myself - TR1 and AP1, in addition to form ID1 for identity verification.

My question for the Land Registry representative who sometimes posts useful replies (or anyone els) is:
1. Are there any other forms required?
2. My daughter's friend is a qualified solicitor who is working in the corporate sector - ie she is not a high street solicitor or conveyancer. Can she sign the ID1 form to verify our identity as she has known us all for many years.
3. How long will the whole process take from submission to LR? I'm hoping to take advantage of the CGT situation before 5 April - is it realistic?

Would be grateful for advice from anyone who has done this recently. Many thanks in advance.

theartfullodger

How much CGT do you expect to pay when transferring?

Daughter needs to know what value she will be taking on for her eventual (maybe 30 years ) disposal and CGT bill.

Any tenants ?  All paperwork perfect?  Aware of need for s3 and s48 notices ?

EssexHebridean

Is the intention to transfer the property with tenants in situ? If so, do your daughter and SIL actually want to be landlords? And are they already familiar with the various aspects they will need to learn about in order to be good landlords? Assuming it will be tenanted, then do your daughter and SIL already own a property to live in themselves? If not you understand they will lose the FTB status for SDLT purposes if they do plan to buy, they will also have to pay their SDLT at the higher rate?

The LR are currently taking anything from a few weeks to a few years to register. Our straightforward purchase back in September took around 8 weeks to come through - that was without any requisitions being raised and you’ll be lucky to get away with that with a DIY application. It is generally the more complex applications which take the longest. 

One thing to bear in mind though - the change of ownership occurs at the point that the TR1 is dated, not at the point the transaction is registered. 

Hoenir

theartfullodger said:

How much CGT do you expect to pay when transferring?

Wonder if this aspect has been overlooked.?  

papatango_2

EssexHebridean said:

Is the intention to transfer the property with tenants in situ? If so, do your daughter and SIL actually want to be landlords? And are they already familiar with the various aspects they will need to learn about in order to be good landlords? Assuming it will be tenanted, then do your daughter and SIL already own a property to live in themselves? If not you understand they will lose the FTB status for SDLT purposes if they do plan to buy, they will also have to pay their SDLT at the higher rate?

The LR are currently taking anything from a few weeks to a few years to register. Our straightforward purchase back in September took around 8 weeks to come through - that was without any requisitions being raised and you’ll be lucky to get away with that with a DIY application. It is generally the more complex applications which take the longest. 

One thing to bear in mind though - the change of ownership occurs at the point that the TR1 is dated, not at the point the transaction is registered. 

Thanks so much for your insight. Sorry I should have mentioned that the tenants have been given notice and will move out at the end of the month whereupon my daughter and SIL will move into it as their principle private residence, theartfuldodger's comment of the potential gain won't apply in this instance. 
I am aware that I will have to pay cgt on the gain but it's really useful to know that the transfer will be taken as from the date of the TR1 and not the registration date. In this case I will be able to take advantage of this year's cgt allowance of 6k for each of us instead of next tax year's reduced allowance of 3k.
Can anyone confirm my questions 1 & 2? 
Many thanks. 

Olinda99

why do you want a diy approach?

could you enquire of a local solicitor how much a simple xfer would cost, particularly as this cost can be deducted from and cgt bill?

propertyrental

papatango_2 said:

EssexHebridean said:

Is the intention to transfer the property with tenants in situ? If so, do your daughter and SIL actually want to be landlords? And are they already familiar with the various aspects they will need to learn about in order to be good landlords? Assuming it will be tenanted, then do your daughter and SIL already own a property to live in themselves? If not you understand they will lose the FTB status for SDLT purposes if they do plan to buy, they will also have to pay their SDLT at the higher rate?

The LR are currently taking anything from a few weeks to a few years to register. Our straightforward purchase back in September took around 8 weeks to come through - that was without any requisitions being raised and you’ll be lucky to get away with that with a DIY application. It is generally the more complex applications which take the longest. 

One thing to bear in mind though - the change of ownership occurs at the point that the TR1 is dated, not at the point the transaction is registered. 

....
Can anyone confirm my questions 1 & 2? 
Many thanks. 

I don't believe so.

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