Mortgage paid name on the deeds do we need to engage a solicitor

Grace007

My Son and I bought our former council house, both names on Mortgage, paid it off.     Now can we transfer to just his name, its his full time home, worth about £130. 000  so not inheritance etc.   Can we do this without a solicitor.

Keep_pedalling

If it is your home as well you would be foolish to give away your share as you will be giving away your long term security as well. 

jaybeetoo

You may have to pay capital gains tax if it’s not your main property.  If its market value is above the stamp duty threshold your son may need to pay stamp duty.  If you die before 7 years, inheritance tax may be due depending on your other assets.

Grace007

My main property,   market value, £130,000      no other assets just state pension.

bobster2

Grace007 said:

My main property, market value, £130,000 no other assets just state pension.

Why do you want to give away your only significant asset - 50% share of your house (worth £65,000)???

You are nowhere near inheritance tax territory - so what purpose would this serve?

lincroft1710

What is the point of transferring your interest to your son?

Jude57

Grace007 said:

My main property,   market value, £130,000      no other assets just state pension.

Others with more knowledge will likely be along shortly but bear in mind that, if you need residential care within 7 years of transferring ownership, the local authority may consider that you have deliberately deprived yourself of an asset at under value (assuming your son isn't going to pay you market value for your share) to avoid paying for care. In that case, they'd treat you as still owning the asset and may refuse to fund your care.

If the idea is to ensure that your son doesn't have to sell the house if you need residential care, I think he may not be required to sell as it's his own home. There's some information here:

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/

If @elsien is around, they're one of the experts in this area and can hopefully advise more fully.

bobster2

Jude57 said:

Grace007 said:

My main property,   market value, £130,000      no other assets just state pension.

Others with more knowledge will likely be along shortly but bear in mind that, if you need residential care within 7 years of transferring ownership, the local authority may consider that you have deliberately deprived yourself of an asset at under value (assuming your son isn't going to pay you market value for your share) to avoid paying for care. In that case, they'd treat you as still owning the asset and may refuse to fund your care.

There is no 7-year time limit on local authorities taking action regarding deprivation of assets. Local authorities can investigate transfers no matter how long ago they took place.

You're thinking of the 7-year rule for gifts and IHT.

Grace007

Its my sons home along with me he was on the joint mortgage as I only had a state  pension,  He has covered the mortgage payments and finances all the upkeep and refurbishments, I  would for when I die just like the house to be in his name 100% so its not a myther  changing it over after death.  Just want things simple, the utilities and internet are in his name just forward planning.  Like a prepaid funeral.

Grace007

lincroft1710 said:

What is the point of transferring your interest to your son?

Its my sons home along with me he was on the joint mortgage as I only had a state  pension,  He has covered the mortgage payments and finances all the upkeep and refurbishments, I  would for when I die just like the house to be in his name 100% so its not a myther  changing it over after death.  Just want things simple, the utilities and internet are in his name just forward planning.  Like a prepaid funeral.

Grace007

bobster2 said:

Grace007 said:

My main property, market value, £130,000 no other assets just state pension.

Why do you want to give away your only significant asset - 50% share of your house (worth £65,000)???

You are nowhere near inheritance tax territory - so what purpose would this serve?

Its my sons home along with me he was on the joint mortgage as I only had a state  pension,  He has covered the mortgage payments and finances all the upkeep and refurbishments, I  would for when I die just like the house to be in his name 100% so its not a myther  changing it over after death.  Just want things simple, the utilities and internet are in his name just forward planning.  Like a prepaid funeral.