Transfer of equity advice

toni2014

Purchased house back in 2019 with my partner, cohabiting, not legally married.

The house is our main residence.

No mortgage on the property, both parties paid 50% towards the property.

Title deeds are only on the one person's name 

To protect their share, the person who does not have their name on the title deeds is looking to add their name to the title deeds, so it shows both names 50/50

Looking to do this using forms TR1, AP1 and ID1 

Has anyone completed the forms themselves without a solicitor?

propertyrental

toni2014 said:

Has anyone completed the forms themselves without a solicitor?

Yes. Lots of people.

propertyrental

toni2014 said:

propertyrental said:

toni2014 said:

Has anyone completed the forms themselves without a solicitor?

Yes. Lots of people.

Are those the correct forms?
Can the post office do the verification of ID?
Upon transfer will there be any tax to pay?

Yes.

https://www.gov.uk/guidance/completing-forms-id1-and-id2

SDLT is payable on the consideration, so no. But you may need to complete a SDLT Return.

https://www.gov.uk/stamp-duty-land-tax

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

Though it could be argued your

partner has already paid 50% so if that's over the SDLT threshold tax may be due..........?

SDLT_Geek

toni2014 said:

Purchased house back in 2019 with my partner, cohabiting, not legally married.

The house is our main residence.

No mortgage on the property, both parties paid 50% towards the property.

For tax purposes title deeds are only on the one person's name as the other half has other properties in their name.

To protect their share, the person who does not have their name on the title deeds is looking to add their name to the title deeds, so it shows both names 50/50, no money is changing hands, so it will be done as a gift transfer of equity.

Looking to do this using forms TR1, AP1 and ID1 

Has anyone completed the forms themselves without a solicitor?

Perhaps you should take some advice as to whether tax was underpaid in 2019.  If the property is in England then the relevant tax is stamp duty land tax.  SDLT works on the basis not of whose name is on the title, but on the basis of the underlying ownership.  It sounds as if your partner may well have had a share from the start, having paid 50% towards the property; also you refer to protecting "their share". 

Is it really a "gift" now, or is it more a case of getting the ownership as shown at the Land Registry to match the existing underlying ownership?

Edit: I had assumed it was your partner whose name was not on the title, but re-reading I see you have not said which way round it was.  It does rather sound as if both of you have underlying shares from the start, whoever's name it was in.

propertyrental

SDLT_Geek said:

toni2014 said:

Purchased house back in 2019 with my partner, cohabiting, not legally married.

The house is our main residence.

No mortgage on the property, both parties paid 50% towards the property.

For tax purposes title deeds are only on the one person's name as the other half has other properties in their name.

To protect their share, the person who does not have their name on the title deeds is looking to add their name to the title deeds, so it shows both names 50/50, no money is changing hands, so it will be done as a gift transfer of equity.

Looking to do this using forms TR1, AP1 and ID1 

Has anyone completed the forms themselves without a solicitor?

Perhaps you should take some advice as to whether tax was underpaid in 2019.  If the property is in England then the relevant tax is stamp duty land tax.  SDLT works on the basis not of whose name is on the title, but on the basis of the underlying ownership.  It sounds as if your partner may well have had a share from the start, having paid 50% towards the property; also you refer to protecting "their share". 

Is it really a "gift" now, or is it more a case of getting the ownership as shown at the Land Registry to match the existing underlying ownership?

This is kind of what I meant by

propertyrental said:

Though it could be argued your

partner has already paid 50% so if that's over the SDLT threshold tax may be due..........?

though as always SDLT_Geek says it better!

user1977

The transferee is a party to the transfer, so no, they can't be a witness. Anybody else who isn't involved in the transaction can be a witness.

SDLT_Geek

toni2014 said:

I'll speak to sdlt customer services to clarify, unsure if it will be based on purchased price or current market value?

Back to the form...

1. Does the 'transferee' and the 'transferor' need to each complete the ID1 form? Or is it just the transferor?

2. Panel 12 TR1 form, only the 'transfereor' needs to execute the deed, is that correct?

'One party to the transfer cannot witness the signature of another party to the transfer'. Does this mean that the 'transferee' is not allowed to witness the signature?

Is it acceptable to get our neighbour to be the witness?

It seems quite possible, depending on the facts, that there will be an extra 3% of the price to pay based on the 2019 price together with interest, and perhaps a penalty for an incorrect return.  The penalty should be mitigated if you make an unprompted disclosure.

When you seek advice on SDLT, it would be worth having to hand information about the property owning history of the partner who has other properties.  Had that person sold (or otherwise disposed of) a property within the three years leading up to the 2019 purchase, which that person had lived in as their only or main residence at some point within the three years leading up to the 2019 purchase? If so, that might "save the day"!

Schwarzwald

You clearly say that both parties “paid” 50% toward the property.

 

This sounds pretty much like concealed ownership at date of purchase to avoid stamp duty tax.

 

Not sure why people should help you with this.