How to remove name safely from deeds

Emmia

Completely separate but as you're not married / CP to your girlfriend, but are having kids with her.. do you both have solicitor drafted wills in place should the worst happen?

Do you own or are you renting your current place that she's moving into with you? 

GDB2222

For SDLT purposes, the transfer to the sister is not at £nil.  The sister will be taking over the girlfriend’s half of the mortgage, so the transfer is for £57,500 (50% of £115k).

Top11

I own my current place. No we don't have wills in place i know that's something we look into later.

GDB2222 said:

For SDLT purposes, the transfer to the sister is not at £nil.  The sister will be taking over the girlfriend’s half of the mortgage, so the transfer is for £57,500 (50% of £115k).

So is it her sister who has to pay sdlt on 57,500? I thought there was no sdlt as it was under the threshold of 125k?
Or have I got it wrong

Section62

Top11 said:

I own my current place. No we don't have wills in place i know that's something we look into later.
....

You need to do it much sooner than "later".  Otherwise you could leave your girlfriend in an absolute mess if anything happened to you.

You also need to decide now what rights (if any) you are happy for her to have in your owned property - and get that legally documented.

Frankly she'd be mad to gift her share of her current home to her sister without having a legal share of your home together.

If you aren't planning to buy together for a couple of years then there's no reason for her to rush to gift her share.

BikingBud

Top11 said:

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?

Seems to be fraught with issues to me.

How can this be resolved such that it is fair to all and postures everybody well for future liabilities?

Did parents sell house to daughters? Market rate?

You say the mortgage is £115k what was the market value and do the parents consider they retain the equity above £115k? 

Are there issues with reservation of benefits? Parents paying rent?

Have they in fact just been paying the parents' mortgage? Or have they done full application including affordability to take on the loan?

How long have both daughters been paying the mortgage?  In equal shares?

How was the equity share decided, including parents? Was it decided, or just left to chance?

Was there any consideration of escape clauses? Or financial hardship problems?

Now, other sister cannot afford to buy out, what can she afford? Full mortgage payment? Part mortgage payment?

What is the difference between what would be fair and what she can afford?

How does that impact upon your future plans, can you really afford to gift that taking into account your future plans?

Especially if there are additional costs?

Sorry that that is not advice but feel that these questions for me would be fundamental in shaping any decisions.

GDB2222

Top11 said:

I own my current place. No we don't have wills in place i know that's something we look into later.

GDB2222 said:

For SDLT purposes, the transfer to the sister is not at £nil.  The sister will be taking over the girlfriend’s half of the mortgage, so the transfer is for £57,500 (50% of £115k).

So is it her sister who has to pay sdlt on 57,500? I thought there was no sdlt as it was under the threshold of 125k?
Or have I got it wrong

Yes, it is the sister who is liable. And, yes, it is probably £nil. I mainly mentioned it because someone else, in different circumstances, might be looking at the thread.

Top11

Yea to all this isn't a easy issue to deal with. It is a utter mess.
Gf sister lives with her family, she's been from dramas wont be able to work long term, has kids etc. So plan because of her situation is to leave the house with her.

I want my gd to make a clean exit and start her own life, we have a kid on the way. I will make a will. Long term plan is to get married so my house goes to her, then eventually our kid.

I don't want her to just leave her sisters place and create herself a cgt liability by leaving her name on there. She was only meant to be on there for mortgage purposes but at the time they transferred legal and beneficial title to both parties when she was added to mortgage. Like I said its a mess we just trying to rectify so she can move on without cgt or iht liability moving forward