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Adding daughter to house ownership

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Tooyoungtoretire59
Tooyoungtoretire59 Posts: 18 Forumite
10 Posts First Anniversary Name Dropper
in Marriage, relationships & families
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.

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  • elsien
    elsien Posts: 35,989 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 21 May 2024 at 12:58PM
    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.

    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Brambling
    Brambling Posts: 5,946 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    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 
    Life shrinks or expands in proportion to one's courage   -          Anais Nin
  • RAS
    RAS Posts: 35,564 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    If you've have not made a mistake, you've made nothing
  • Keep_pedalling
    Keep_pedalling Posts: 20,792 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    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
    Brie Posts: 14,679 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    What if you decide to move, get a new partner, want to sell up?  Loads of good reasons to keep things simple.  
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards.  If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Just leave it to her in your will
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
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