Big mistake transferring house deeds - help!

silvercar

Bananarama66 said:

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. 

There is an argument that living term time only at university means you can keep your primary residence elsewhere. Students often return to the family home when not studying at university, that doesn’t mean their primary residence moves every few weeks.

NorthYorkie

    

Bananarama66  You should carefully read the post by Poseidon1 above and in particular follow the link to the HMRC Capital Gains Manual. You should also see SDLTM29855 - Definition of a first-time buyer – Previous acquisition by a Bare Trust - HMRC internal manual - GOV.UK 

You have not responded to the second part of my post which asked whether you could produce any evidence that it was never the intention that you should have beneficial ownership. If such evidence can be produced then an argument can be made that you are merely the trustee of a 'resulting trust' (AKA a 'bare trust') and, as a result you would be a first time buyer for SDLT and not liable for any CGT on a sale.

You should however get advice from a professionally qualified solicitor as advised by Poseidon1 (NOT the solicitor who allowed this can of worms to be created!)

sheramber

If it was established that the father retained the beneficial ownership of the house  would his wife inherit that beneficial interest, thus negating the purpose of transferring the house to the son? 

NorthYorkie

I don't know whether the father has a wife or not. Bananarama66 refers to his father's 'partner', which, unfortunately these days, some people use as a term for both a spouse and a co-habitee. We also don't know the terms of his father's will (if, indeed, he actually has one).

If it could be established that the father had retained beneficial ownership. what he could do is to make a new ? will and grant his 'partner' a life interest in the property with beneficial ownership going to his sons on her death

pinkshoes

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?

So you were aware that you owned a house and unfortunately have learned the hard way about not doing your own research. 

Obviously your dad should have had the house in his own name with a will stating that upon his death he leaves the house to you.

I assume this is a second marriage and should his partner out-live him she would have then left the house to her own kids and not you?

On the plus side you, although it cost you your FTB status,  you will at least now inherit a lump sum one day that will be more than this amount.

Sistergold

I am not knowledgeable in these things but can one not gift a house to one’s father or daughter? Do a change of name at deeds office?

_Penny_Dreadful

Bananarama66 said:

NorthYorkie said:

I agree with the above.

If the house were to be sold, who gets the sales proceeds??

Do you have any evidence that your father did not intend you to be the beneficial owner, of the property and that the purported purchase was just a sham? (e.g. any correspondence between your father and the solicitors?). If not, then you might find life easier just to pay the additional SDLT

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. 

Is there legal documentation stating that this is the case or is that something you assume is the case? 

_Penny_Dreadful

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?

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. 

This transfer of property happened 5 years ago whilst you were at university. For the 3 years proceeding the purchase of the home with your partner where were you living? 

Were you still at university renting accommodation there during the term time and returning to live with your father outside of term? 

markin

Legally you have to agree and sign to sell the house, you can give any bank account.