Adding daughter to house ownership

Tooyoungtoretire59

Can anyone advise of any drawbacks to adding my daughter to my house ownership so we own it together.  Daughter is 21 and lives at home with me.  I own the house (no mortgage), I have no partner - sadly he died 20 years ago.  I dont claim any benefits.

elsien

For what purpose?
It would deprive your daughter of first time owner benefits as and when she is ready to buy her own place. 

When she does move out, having a half house  she doesn’t live in could affect her entitlement to means tested benefits. 

If she marries and then divorces, half at the house will count as a marital asset.
There are  probably tax implications Which I’m sure someone will be along to reference in due course. 

Per various of the worst case scenarios such as debt/ bankruptcy/Having a huge family falling out.

So it does really depend as to why you want to give her half the house? Because she’s 21, and she’s not going to be at home forever.

Brambling

what happens if you don't like or don't get on with a future partner she wants to move in and just because you and your daughter get on well now people and relationships can unfortunately change 

RAS

If your daughter moves out, when the house is sold, she will be liable for CGT for the relevant period.

And if she wants to buy her own home, not only does she (and any partner) lose her first time buyer status, she will also have to pay the higher rate SDLT/relevant tax if outside England.

You'll be hampering her with additional costs and restricting her ability to consider moving for work, life or a partner.

Let her live with you rent free if she's a good saver, or charge her rent and save it up towards a deposit for her own rental or mortgage deposit.

Keep_pedalling

Not a great move, your daughter will lose her first time buyer status and will have to pay an additional 3% SDLT when she wants to buy her own place (unless she gifts it back to you. 

Brie

What if you decide to move, get a new partner, want to sell up?  Loads of good reasons to keep things simple.  

McKneff

Just leave it to her in your will

Tooyoungtoretire59

Thanks for everyones input.  I asked the question ‘what are the drawbacks’ and from everyones input i cant see any positives so obviously its not a good idea.  Thank you 🙂