How to remove name safely from deeds

Top11

My girlfreind is pregnant and to plan for future she is moving in with me soon. 

The problem! where she currently lives with her family , she and her sister had to take over the title deeds so they could pay the mortgage for their parents who can't work. They all live under the same roof.

Now her sister cant buy her out, so we was thinking can my girlfriend gift her share to her sister.
There is a mortgage of 115k on the property and they are joint owners.
By gifting her share and moving out,  this would be a pet and should be no iht concerns if she lives 7 years.
I don't believes there's any SDLT issues? Does it need reporting though on to hmrc?

Also no cgt as it was her main residence throughout.

I'm trying to avoid any future tax implications for my girlfreind to.
Would the mortgage company also allow her sister to fully take over the mortgage without issue?
Would the above work without any issues?

RAS

Before anyone does anything, the sister needs to check whether she can take on the mortgage. Are they currently in a fixed term?

Top11

They are in a 2 year fixed, which comes to a end next year August. There's 115k mortgage remaining.
She's working with a salary of 35k.
I guess we check with mortgage company that she can take it on, the move to solicitors 

RAS

Get sister to post up on the mortgage subforum here. There are some very generous advisors on there and she'll be able to answer any queries directly.

Section62

Top11 said:

The problem! where she currently lives with her family , she and her sister had to take over the title deeds so they could pay the mortgage for their parents who can't work. They all live under the same roof.

Why is this a problem?

Do you mean you want to buy a home together so she needs to be off the existing mortgage?

Top11 said:

Now her sister cant buy her out, so we was thinking can my girlfriend gift her share to her sister.

In addition to anything else, if she gifts her share of a home to her sister then she might have problems getting housing if anything happens with you and/or your relationship.  There's also no guarantee 'x' years down the line the sister would let her move back in and/or gift the half-share back.

TBH she could be taking a very big risk, which might affect you as well.

Top11

Section62 said:

Top11 said:

The problem! where she currently lives with her family , she and her sister had to take over the title deeds so they could pay the mortgage for their parents who can't work. They all live under the same roof.

Why is this a problem?

Do you mean you want to buy a home together so she needs to be off the existing mortgage?

Top11 said:

Now her sister cant buy her out, so we was thinking can my girlfriend gift her share to her sister.

In addition to anything else, if she gifts her share of a home to her sister then she might have problems getting housing if anything happens with you and/or your relationship.  There's also no guarantee 'x' years down the line the sister would let her move back in and/or gift the half-share back.

TBH she could be taking a very big risk, which might affect you as well.

Thanks all valid points.
It's a tricky situation,  her sister has her own family living their with 2 kids. She was to dis associate herself and let her sister be in that house as it will ultimately be her sisters in the future. 

My plan is to build our family in our own place. We don't want her tied to that house,  so is gifting thr best thing to do,  any other options?

Section62

Top11 said:

Section62 said:

Top11 said:

The problem! where she currently lives with her family , she and her sister had to take over the title deeds so they could pay the mortgage for their parents who can't work. They all live under the same roof.

Why is this a problem?

Do you mean you want to buy a home together so she needs to be off the existing mortgage?

Top11 said:

Now her sister cant buy her out, so we was thinking can my girlfriend gift her share to her sister.

In addition to anything else, if she gifts her share of a home to her sister then she might have problems getting housing if anything happens with you and/or your relationship.  There's also no guarantee 'x' years down the line the sister would let her move back in and/or gift the half-share back.

TBH she could be taking a very big risk, which might affect you as well.

Thanks all valid points.
It's a tricky situation,  her sister has her own family living their with 2 kids. She was to dis associate herself and let her sister be in that house as it will ultimately be her sisters in the future. 

My plan is to build our family in our own place. We don't want her tied to that house,  so is gifting thr best thing to do,  any other options?

But are you buying, renting, or what?

Brie

Why can't her sister take on the whole mortgage (assuming the bank oks it) and your girlfriend keep her name on the deeds?   Yes there would be a CGT issue eventually and likely issues with a second home for council tax but isn't an immediate issue I wouldn't think.  

Top11

Section62 said:

Top11 said:

Section62 said:

Top11 said:

The problem! where she currently lives with her family , she and her sister had to take over the title deeds so they could pay the mortgage for their parents who can't work. They all live under the same roof.

Why is this a problem?

Do you mean you want to buy a home together so she needs to be off the existing mortgage?

Top11 said:

Now her sister cant buy her out, so we was thinking can my girlfriend gift her share to her sister.

In addition to anything else, if she gifts her share of a home to her sister then she might have problems getting housing if anything happens with you and/or your relationship.  There's also no guarantee 'x' years down the line the sister would let her move back in and/or gift the half-share back.

TBH she could be taking a very big risk, which might affect you as well.

Thanks all valid points.
It's a tricky situation,  her sister has her own family living their with 2 kids. She was to dis associate herself and let her sister be in that house as it will ultimately be her sisters in the future. 

My plan is to build our family in our own place. We don't want her tied to that house,  so is gifting thr best thing to do,  any other options?

But are you buying, renting, or what?

She move into my place,  have the kids. Then we will buy our own place together eventually within 2 years

Top11

Brie said:

Why can't her sister take on the whole mortgage (assuming the bank oks it) and your girlfriend keep her name on the deeds?   Yes there would be a CGT issue eventually and likely issues with a second home for council tax but isn't an immediate issue I wouldn't think.  

She hasn't got much money so we want to avoid any cgt liability. Plus she could never sell that place as it involves her family selling up family home m if she took half the proceeds so not a avenue we can do

Tiglet2

The mortgage lender would have to consent to your girlfriend coming off the mortgage and deeds, so the lender would need to be satisfied that the sister can manage the mortgage repayments on her own.