Removing my name from joint title deeds

AskAsk

RAS said:

Gonzo1975 said:

Thanks all. Re her remarrying or changing the will, thats not an issue. The children are aware of the plan and I really cant see her betraying them. Thats really not an issue.

The fact that she marries automatically renders any previous will void. She doesn't need to  betray them.

Been examples of predatory marriages of elderly folk that have confirmed this IRL. Even if you don't care, the kids need to understand.

or her financial circumstances change and she needs to sell the house to release equity or if she goes into care and has to sell the house to fund care fees.

silvercar

You have a CGT allowance, currently £3k a year, could you transfer small percentages each year until it is all transferred?

AskAsk

silvercar said:

You have a CGT allowance, currently £3k a year, could you transfer small percentages each year until it is all transferred?

you can't do that on an equity transfer and that would be deliberate tax evasion.

Gonzo1975

housebuyer143 said:

Gonzo1975 said:

Lots of questions and comments which I thank you for.
More context to how I got here, and yes I know most people will think I’m being a mug, but I honestly do not have the mental stamina to get my equity from her.

We split 17 years ago. I cheated and left her and my children in the house. I paid all the mortgage payments as well as 25% of my salary as child maintenance.

Our relationship remained amicable and I had unlimited access to my children. In truth I carried a huge guilt for leaving her a single mother.

The mortgage is now cleared and I am about to retire with a nice lump sum that will allow me to purchase a new home outright.

Originally I wanted half the equity out of the house but she made it clear she would fight it. Taking her to court to force her to sell would see her turn my children against me, telling them I have made them homeless.

I know I can charge her half the rental value each month but again she would pass that onto the children in higher housekeep and blame me.

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

I decided the cheapest option was to just remove my name and leave it to her to leave the house to them in a will. This is all very recent and now I realise CGT plays a big part I feel the best option is just to leave it as is.

The children know the house is effectively theirs and I know there is no way the ex would go against that.

So I do thank you all for your comments and help but for me this thread can now be closed.

If you don't come off this house you can't buy another without incurring the additional (now 5%) stamp duty which depending on the value could exceed £15k and you still have the capital gains bill further down the road, so it seems like a waste of money paying the stamp duty just to defer the capital gains, which is only going to increase. 

I would see if you can get your ex to pay all or some of it, because it's not a benefit to you, you are not making a gain but in fact she is. 

It might also be worth checking if there is a stamp duty bill to your ex for recieving your share of the property.

The new property will be less than £100k, I’d rather pay the £5k than £15k (which I don’t have!)

Or I could get my new wife to buy it in her name? Let me guess… there is probably a tax implication for me gifting her £100k?

I honestly didn’t realise there were so many taxes!!

silvercar

Gonzo1975 said:

housebuyer143 said:

Gonzo1975 said:

Lots of questions and comments which I thank you for.
More context to how I got here, and yes I know most people will think I’m being a mug, but I honestly do not have the mental stamina to get my equity from her.

We split 17 years ago. I cheated and left her and my children in the house. I paid all the mortgage payments as well as 25% of my salary as child maintenance.

Our relationship remained amicable and I had unlimited access to my children. In truth I carried a huge guilt for leaving her a single mother.

The mortgage is now cleared and I am about to retire with a nice lump sum that will allow me to purchase a new home outright.

Originally I wanted half the equity out of the house but she made it clear she would fight it. Taking her to court to force her to sell would see her turn my children against me, telling them I have made them homeless.

I know I can charge her half the rental value each month but again she would pass that onto the children in higher housekeep and blame me.

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

I decided the cheapest option was to just remove my name and leave it to her to leave the house to them in a will. This is all very recent and now I realise CGT plays a big part I feel the best option is just to leave it as is.

The children know the house is effectively theirs and I know there is no way the ex would go against that.

So I do thank you all for your comments and help but for me this thread can now be closed.

If you don't come off this house you can't buy another without incurring the additional (now 5%) stamp duty which depending on the value could exceed £15k and you still have the capital gains bill further down the road, so it seems like a waste of money paying the stamp duty just to defer the capital gains, which is only going to increase. 

I would see if you can get your ex to pay all or some of it, because it's not a benefit to you, you are not making a gain but in fact she is. 

It might also be worth checking if there is a stamp duty bill to your ex for recieving your share of the property.

The new property will be less than £100k, I’d rather pay the £5k than £15k (which I don’t have!)

Or I could get my new wife to buy it in her name? Let me guess… there is probably a tax implication for me gifting her £100k?

I honestly didn’t realise there were so many taxes!!

There is no tax on transfers between spouses. But as you are married, you are considered as one unit and so count as already owning a property. 

Emmia

silvercar said:

Gonzo1975 said:

housebuyer143 said:

Gonzo1975 said:

Lots of questions and comments which I thank you for.
More context to how I got here, and yes I know most people will think I’m being a mug, but I honestly do not have the mental stamina to get my equity from her.

We split 17 years ago. I cheated and left her and my children in the house. I paid all the mortgage payments as well as 25% of my salary as child maintenance.

Our relationship remained amicable and I had unlimited access to my children. In truth I carried a huge guilt for leaving her a single mother.

The mortgage is now cleared and I am about to retire with a nice lump sum that will allow me to purchase a new home outright.

Originally I wanted half the equity out of the house but she made it clear she would fight it. Taking her to court to force her to sell would see her turn my children against me, telling them I have made them homeless.

I know I can charge her half the rental value each month but again she would pass that onto the children in higher housekeep and blame me.

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

I decided the cheapest option was to just remove my name and leave it to her to leave the house to them in a will. This is all very recent and now I realise CGT plays a big part I feel the best option is just to leave it as is.

The children know the house is effectively theirs and I know there is no way the ex would go against that.

So I do thank you all for your comments and help but for me this thread can now be closed.

If you don't come off this house you can't buy another without incurring the additional (now 5%) stamp duty which depending on the value could exceed £15k and you still have the capital gains bill further down the road, so it seems like a waste of money paying the stamp duty just to defer the capital gains, which is only going to increase. 

I would see if you can get your ex to pay all or some of it, because it's not a benefit to you, you are not making a gain but in fact she is. 

It might also be worth checking if there is a stamp duty bill to your ex for recieving your share of the property.

The new property will be less than £100k, I’d rather pay the £5k than £15k (which I don’t have!)

Or I could get my new wife to buy it in her name? Let me guess… there is probably a tax implication for me gifting her £100k?

I honestly didn’t realise there were so many taxes!!

There is no tax on transfers between spouses. But as you are married, you are considered as one unit and so count as already owning a property. 

The OP wasn't / isn't married to his ex so the spousal exemption / rules don't apply.

AskAsk

Gonzo1975 said:

housebuyer143 said:

Gonzo1975 said:

Lots of questions and comments which I thank you for.
More context to how I got here, and yes I know most people will think I’m being a mug, but I honestly do not have the mental stamina to get my equity from her.

We split 17 years ago. I cheated and left her and my children in the house. I paid all the mortgage payments as well as 25% of my salary as child maintenance.

Our relationship remained amicable and I had unlimited access to my children. In truth I carried a huge guilt for leaving her a single mother.

The mortgage is now cleared and I am about to retire with a nice lump sum that will allow me to purchase a new home outright.

Originally I wanted half the equity out of the house but she made it clear she would fight it. Taking her to court to force her to sell would see her turn my children against me, telling them I have made them homeless.

I know I can charge her half the rental value each month but again she would pass that onto the children in higher housekeep and blame me.

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

I decided the cheapest option was to just remove my name and leave it to her to leave the house to them in a will. This is all very recent and now I realise CGT plays a big part I feel the best option is just to leave it as is.

The children know the house is effectively theirs and I know there is no way the ex would go against that.

So I do thank you all for your comments and help but for me this thread can now be closed.

If you don't come off this house you can't buy another without incurring the additional (now 5%) stamp duty which depending on the value could exceed £15k and you still have the capital gains bill further down the road, so it seems like a waste of money paying the stamp duty just to defer the capital gains, which is only going to increase. 

I would see if you can get your ex to pay all or some of it, because it's not a benefit to you, you are not making a gain but in fact she is. 

It might also be worth checking if there is a stamp duty bill to your ex for recieving your share of the property.

The new property will be less than £100k, I’d rather pay the £5k than £15k (which I don’t have!)

Or I could get my new wife to buy it in her name? Let me guess… there is probably a tax implication for me gifting her £100k?

I honestly didn’t realise there were so many taxes!!

I am afraid you can't escape taxes.  The tax man has a tight rope and they would consider your new wife as you for the purchase of the new property so just because the new house is in her name only, it doesn't mean she can avoid the extra additional stamp duty as her spouse (you) already has a property, she is also considered to already have a property for stamp duty purpose even if the property is not in her name.

silvercar

Emmia said:

silvercar said:

Gonzo1975 said:

housebuyer143 said:

Gonzo1975 said:

Lots of questions and comments which I thank you for.
More context to how I got here, and yes I know most people will think I’m being a mug, but I honestly do not have the mental stamina to get my equity from her.

We split 17 years ago. I cheated and left her and my children in the house. I paid all the mortgage payments as well as 25% of my salary as child maintenance.

Our relationship remained amicable and I had unlimited access to my children. In truth I carried a huge guilt for leaving her a single mother.

The mortgage is now cleared and I am about to retire with a nice lump sum that will allow me to purchase a new home outright.

Originally I wanted half the equity out of the house but she made it clear she would fight it. Taking her to court to force her to sell would see her turn my children against me, telling them I have made them homeless.

I know I can charge her half the rental value each month but again she would pass that onto the children in higher housekeep and blame me.

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

I decided the cheapest option was to just remove my name and leave it to her to leave the house to them in a will. This is all very recent and now I realise CGT plays a big part I feel the best option is just to leave it as is.

The children know the house is effectively theirs and I know there is no way the ex would go against that.

So I do thank you all for your comments and help but for me this thread can now be closed.

If you don't come off this house you can't buy another without incurring the additional (now 5%) stamp duty which depending on the value could exceed £15k and you still have the capital gains bill further down the road, so it seems like a waste of money paying the stamp duty just to defer the capital gains, which is only going to increase. 

I would see if you can get your ex to pay all or some of it, because it's not a benefit to you, you are not making a gain but in fact she is. 

It might also be worth checking if there is a stamp duty bill to your ex for recieving your share of the property.

The new property will be less than £100k, I’d rather pay the £5k than £15k (which I don’t have!)

Or I could get my new wife to buy it in her name? Let me guess… there is probably a tax implication for me gifting her £100k?

I honestly didn’t realise there were so many taxes!!

There is no tax on transfers between spouses. But as you are married, you are considered as one unit and so count as already owning a property. 

The OP wasn't / isn't married to his ex so the spousal exemption / rules don't apply.

I was referring to the new wife.

Annisele

Gonzo1975 said:

When the idea of signing my half of the property over to the kids came to me I felt relief. Until I looked into the cost.
When I told the ex she said she would happily sign her half over to them too.

Your kids might not actually thank you for that.

If the kids own the house your ex lives in, then they'll lose their first time buyer status. If they buy a house of their own, that means they'll pay considerable extra stamp duty (no first time buyer benefit, plus the stamp duty on a second home). And if they don't live in the house, they will incur the same CGT problem that you have now (even if they live in the house now, they might want to move out).

Gonzo1975

I really don’t like this taxman fella! You sure he isn’t a woman? :-P

Financially and for the kids future I have a lot to think about. Thanks again everyone.