Big mistake transferring house deeds - help!

Bananarama66

lincroft1710 said:

Bananarama66 said:

Just to add here, my father is an extremely kind man and was just doing what he thought would be best for me in the long term. He would not have been aware of these consequences. 

Why would it be "best for you in the long term"?

Like I said, he did not want his partner's children having claim to the property. I know it doesn't make sense but he is from a country where this sort of thing happens regularly. 

Grumpy_chap

Bananarama66 said:

Apologies I wasn't clear. I did sign the paperwork for the property to be in my name. I was in the midst of university exams and I had no clue at the time about how this would impact me nor did the solicitor acting for my father offer advice on the implications for me.

I have since contacted the lawyers firm and they have advised I can transfer the property back into my father's name for a fee. Would this be a bad move?

Have the Solicitors commented about whether there would be any taxes arising if the property is now transferring into your Father's name?
SDLT?
CGT?
AIUI, this would be you gifting the property to your Father so what would be the deemed consideration in that case?

Bananarama66 said:

The house would only be sold if my father wanted to move and then the sales proceeds would go towards his new home, not to me. 

So the house being in your name was a contrived and artificial arrangement.  Not a genuine gift.

Bananarama66

Grumpy_chap said:

So the house being in your name was a contrived and artificial arrangement.  Not a genuine gift.

I'm not sure what this means, my father lives there with his partner. It wasn't a 'gift' to help me buy a property. 

Bananarama66

Grumpy_chap said:

Have the Solicitors commented about whether there would be any taxes arising if the property is now transferring into your Father's name?
SDLT?
CGT?
AIUI, this would be you gifting the property to your Father so what would be the deemed consideration in that case?

No, I only get responses from the conveyancer who has stated that if i sell/give away the property with 3 years of buying my current home, I can apply for a refund of the higher SDLT rate part of my Stamp Duty bill.

I am just dubious as it was such bad advice previously, it seems strange that I can just give it back and get my higher rate SDLT back. 

user1977

Bananarama66 said:

Grumpy_chap said:

Have the Solicitors commented about whether there would be any taxes arising if the property is now transferring into your Father's name?
SDLT?
CGT?
AIUI, this would be you gifting the property to your Father so what would be the deemed consideration in that case?

I only get responses from the conveyancer who has stated that if i sell/give away the property with 3 years of buying my current home, I can apply for a refund of the higher SDLT rate part of my Stamp Duty bill.

That's not true if it was never your primary residence (was it? Somebody assumed that earlier and you haven't contradicted them).

lincroft1710

Bananarama66 said:

lincroft1710 said:

Bananarama66 said:

Just to add here, my father is an extremely kind man and was just doing what he thought would be best for me in the long term. He would not have been aware of these consequences. 

Why would it be "best for you in the long term"?

Like I said, he did not want his partner's children having claim to the property. I know it doesn't make sense but he is from a country where this sort of thing happens regularly. 

The simplest thing would have been for him to bequeath you the house in his will with a stipulation that his partner (and only his partner) would be allowed to remain in the house for the rest of her life

Bananarama66

user1977 said:

That's not true if it was never your primary residence (was it? Somebody assumed that earlier and you haven't contradicted them).

I was at university so it's the address that all my mail went to but not sure if that counts as primary residence. 

sheramber

If you have not lived there since the transfer of title then it has not been your primary residence.

Not only would you not get a refund of the stamp duty but you would need to consider CGT on the increase in value of the house from when it was transferred to the market value when you transfer it back to your father. 

sheramber

If you are not married or  in a Civil Partnership and your  partner could afford to buy it on her own then there not be the additional SDLT to pay. 

poseidon1

Much will turn on the nature of any parole evidence ( outside of documentary evidence) which can be adduced surrounding the precise circumstances and intentions of both parties, when the property was originally put in the OP's name.

However if it can be shown that beneficial ownership of the property was always assumed to rest with the father ( ie in the event of sale and reinvestment your father retains continued right to occupy a replacement home), then there maybe some milage in trying to assert a resulting tust ( a type of implied trust)  was originally created, with OP holding as trustee for father - see HMRC internal guidance  below and how   TCGA1992  s225 ( cgt main residence exemption) is retained in those circumstances.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65415

Ultimately, the parties would be seeking for ownership of property to revert back to personal ownership of  the putative settlor ( the father ) thereby bringing the 'implied' resulting trust to an end.

The main issue here however,  is whether there is on the whole compelling evidence that points to an actual 'no strings'  attached gift by father to son, albeit (from what we are told ) to defeat a potential matrimonial claim to the property by the father's partner at time.

OP would need to consult a specialist STEP qualified contentious trust lawyer, to see if there is any milage in contending a resulting trust is in place, and whether such a finding would require court ratification. That said, if the property is only of modest value, the  cost/benefit of pursuing this option maybe marginal.